When Safety Goes Ballistic

Some of the charts lately have gone seemingly parabolic. The surprising thing is what sectors are going ballistic. Usually these are the slow and steady.

This is the action since mid February. 30 trading days. The $SPX is up, but these sectors have outperformed the $SPX by at least 3%.

What makes this particularly interesting is normally, when the cyclical stocks show seasonal weakness between April and July, the fund managers rotate into safety. When the dividend payers are already parabolic, will it still be safe to move into a sector like that?

Check out some of the staples and healthcare.

You can look at many of them, but just a few to mention PG,PFE,JNJ and GSK. SWY, SJR/B.TO.

Good Trading,

Greg Schnell, CMT