Sector Rotation

Sector Rotation

The buzz word this year has been “SECTOR ROTATION”, the minute one sector takes off for a few days it settles down and then the weakest starts to move up. In other words, it has been a mean reverting market, last year’s losers are this year’s biggest winners; ENERGY, METALS.

With that being said, the XLE (energy ETF) is down five days in a row, and many energy stocks are as well.  AR, CENX, are two of interest at this very moment. They both are retesting multi-month breakouts which I expect that they will hold, and if mean reversion takes effect again then these are great entry points.

ETF’S are for the most part mean reverting vehicles; anytime they are down 5-6 days in a row it peaks my interest along with the stocks within the sector.

My opinion and outlook are subject to change as new information comes in. 

Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463.


         


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
By |2018-02-02T12:08:18+00:00May 4, 2016 12:46 pm|

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