Tracking the Rotations

The "safety" trades seeking yield, namely in the IYR XLP XLU sectors, are unwinding for the second consecutive session as I write this. At issue now is where we see that money flowing, be it to higher beta/riskier sectors like the XBI (small/mid-cap biotech ETF) or beaten-down hot tamales like FIT GPRO LNKD TWTR YELP. 

And then there is always the possibility that the capital flowing out of IYR XLP XLU may head to the sidelines altogether, or at least shun equities in favor of the material/mining/commodity complex into consolidations. 

Whichever rotation comes to fruition should set the tone into summer trading, coming up sooner than later. 

In addition, MCD reports tomorrow morning before the bell, another dividend-payer which had been a bastion for yield in a ZIRP world. The underlying bid in MCD surely went on much longer than I had expected over the last few years. So it should be interesting to see if that possibly crowded play unwinds after earnings tomorrow, too, in light of the IYR XLP XLU action.