Smelling Rotations to Ensure Survival

If the major averages are going to continue to churn, then bulls likely need to continue the daily theme of sector rotation in order to ensure that bears betting on an imminent market swoon are proven wrong again. 

This morning, we have some materials giants like BHP RIO VALE gapping up off the opening bell. As one of our Members noted earlier, this type of action comes as materials miner CLF, below on the daily timeframe, attempts to break a six-week consolidation higher (highlighted). 

The issue with this rotation game, of course, is whether the moves have staying power, beyond a one-off sigh of relief for bulls on nay given session that the entire market is not wobbling. 

But if materials miners are back in action, it will compliment the progress made by biotechnology, healthcare, and cybersecurity stocks to kick off 2017 as far as sectors benefitting from rotation to keep the bull thesis intact. 

With this in mind, I am looking to see if steel plays, another part of the XME (ETF for metals and miners) also kick it into gear, such as X, for fresh legs higher from their current consolidation patterns.