The Recent By The Dip Is A Little Different, So Says Sector Rotation

 

‘Buy the dip’ has been working well, however the latest ‘buy the dip’ has changed its stripes, it a little different from the rest.

There three buy the dips marked on the charts below (A, B, C), both A and B show the SPDR Consumer Discretionary (XLY) being a leader of relative strength, however C shows SPDR Utilities as the leader of relative strength, and not buy a little, look at the explosion of relative strength into XLU. This means institutions see more value in electric companies with there stable dividends than the higher flying consumer good companies.  

This real sector rotation, if you research minor and major market tops of the most recent past this type of rotation is not new. 

NOTE: The chart format below are the readtheticker.com Alpha charts for relative strength studies.

SPDR Consumer Discretionary chart…

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SPDR Utilities chart

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NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net 

Investing Quote…

..”Frequent requests are made for the name of someone who will teach the Art of Tape Reading. I do not know of anyone able to read the tape with profit who is willing to become an instructor. The reason is very simple. Profits from the tape far exceed anything that might be earned by charging tuition fees to his students. Its simple economics”…

George Soros