05Sep2:36 pmEST

Tech is Played Out: Here's Where the Action Is

Recent blog posts have focused on rotation into financials and out of high profile growth names, mostly in tech, coming off the Labor Day weekend. 

In addition to banks, also note the overlooked industrials housed in the XLI ETF displaying signs of being a clear rotation beneficiary for capital looking to stay within equities as an asset class, but not push the envelope in terms of the extended monster winners like AAPL AMZN SQ in tech. 

Mind you, shorting tech is far from an easy proposition, given how uniquely resilient the space has been for a good while.

But near-term risks mostly look to be sideways or lower instead of immediately higher. 

And thus the rotation into regionals and industrials becomes all the more alluring, particularly if the broad market can stave off a complete washout this autumn. 

On the XLI daily chart, below, you would never know how many tech names today are breaking apparent bull flags and bases lower, given the impressive green candlestick attempting to clear a long sideways base up and out. 

Industrials are far from a sexy sector, in a similar vein to regional banks. But September trading is often anything but sexy, anyway. Names like Eaton (ETN) are suddenly acting like they cannot wait to grab hold of the rotation baton for the market's next phase. 

Banks Breaking Rank...But is... Stock Market Recap 09/05/18 ...


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