Time To Sell Technology In Favor Of New Leadership? Charting The Great Rotation Of 2023
Portfolio Pulse from David Keller
The article discusses the ongoing 'Great Rotation of 2023', where mega cap stocks like Microsoft and Apple, which drove the market higher in the first seven months of the year, are now underperforming. Sectors like Financials and Energy are seeing improved relative strength. The Nasdaq 100, Microsoft, and Apple have all closed below their 50-day moving average, indicating a shift in market leadership towards sectors like Energy. The article also highlights two ETFs, the S&P SPDR Oil & Gas Exploration and Production ETF (XOP) and the Oil Services ETF (OIH), which are making new relative highs.
August 14, 2023 | 6:08 pm
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NEGATIVE IMPACT
Apple's stock is in a distribution phase, with a gap below the 50-day moving average followed by further downside movement, indicating more selling pressure.
Apple's stock has shown clear evidence of being in a distribution phase, with a gap below the 50-day moving average followed by further downside movement. This suggests that no willing buyers came in to buy on price weakness, but instead that more selling pressure is in play.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Microsoft's stock has been underperforming and has closed below its 50-day moving average, indicating potential further downside.
Microsoft's stock has been consistently making higher highs every month in 2023, but after making new highs in mid-July, the stock has now pushed lower and violated the 50-day moving average. This indicates a bearish momentum and potential further downside.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The Oil Services ETF (OIH) has shown improved performance, making new relative highs.
The Oil Services ETF (OIH) has surfaced recently as an example of a previously underperforming industry group that has rotated higher. This indicates a potential opportunity for investors.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
The S&P SPDR Oil & Gas Exploration and Production ETF (XOP) has shown improved performance, making new relative highs.
The S&P SPDR Oil & Gas Exploration and Production ETF (XOP) has surfaced recently as an example of a previously underperforming industry group that has rotated higher. This indicates a potential opportunity for investors.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70