In this edition of StockCharts TV's Sector Spotlight, I start with a look at what happened last week in terms of rotation for asset classes and sectors. After that, I put these rotations in longer-term perspective using weekly charts and Relative Rotation Graphs while overlaying the 12-month rolling BETA for sectors and comparing those values with the first half of 2020.
One of the conclusions is that Technology has lost its role as a defensive sector and is now back at the top of the list with the second highest 12-month BETA. When focusing on the rotation of the tails for Technology and Consumer Discretionary, in combination with their BETA readings, a short-term warning is issued for the market in general. Wrapping up the show, I note the strong rotation of the USD against other major currencies that is currently underway, which will impact foreign investments for US-based investors.
This video was originally broadcast on March 9th, 2021. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube. You can also check out the video on the new StockCharts TV on-demand website stockchartstv.com, or on the associated app on mobile platforms like iOS and Android, or TV platforms like Roku, Apple TV, Amazon Fire TV and Chromecast.
Sector Spotlight airs weekly on Tuesdays at 10:30-11:00am ET. Past episodes can be found here.
#StaySafe, -Julius
Julius de Kempenaer
Senior Technical Analyst, StockCharts.com
Creator, Relative Rotation Graphs
Founder, RRG Research
Host of: Sector Spotlight
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