In this episode of StockCharts TV’s Sector Spotlight, I take a look at the rotations for asset classes and sectors. The current state of the rotations in asset classes shows Bitcoin and Commodities far away from the benchmark, which could provide ample opportunities to benefit from larger moves in the coming weeks. The rotational conditions for stocks and bonds are taking place closer to the benchmark, but, all-in-all, they still seem in favor of stocks over bonds for the time being.
Zooming in on the current sector rotation within the S&P 500 index shows a distinct difference between three groups that are on the right-hand side of the RRG vs. all others on the opposite side. The opposite rotations, at the moment, are primarily (relative) momentum-driven, which can help investors to understand and anticipate the moves in stocks vs. bonds in the coming weeks.
Past episodes of Sector Spotlight can be found here.