We’re closing out the first half of 2024… and that means activity is up!
The last week of June tends to see heavier trading volumes as indexes/funds/portfolios are repositioned at the end of the month/quarter/first half of the year.
Looking specifically at sector performance, we can see some shorter term money flows coming out of technology (XLK).
You can also see the impact of this shift on the broader QQQ’s (52% tech weighted: NVDA-8.7%, MSFT-8.5%, AAPL-8.4% ) and the SPX (32% tech weighted: MSFT- (6.9%,AAPL-6.3%, NVDA-6.1%), with NVDA and AAPL especially weighing on overall performance:
Conversely, we can see some money that’s been flowing into Consumer Discretionary (XLY), Healthcare (XLV), and Communication Services (XLC):
Let’s dig deeper on this trend to see if we can find some more details.
With one click of a button on our proprietary trend/trading Market Rover software, we can quickly scan the Consumer Discretionary, Healthcare, and Communication Services sectors to see what comes up.
#1 on the search list is a company within the healthcare sector, Edwards Lifesciences (EW), that’s showing the stock in an uptrend (green up arrow) for 58 days and flashing a fresh new trade (T-Signal) idea beginning (Day Zero)
Next, we can quickly confirm the overall Healthcare Sector (XLV) trend and also see that it’s been in an uptrend (green up arrow) for even longer than EW (98 days) and recently flashed a trade idea (T-Signal) 8 days ago as well:
Then, on a relative basis comparing (EW) vs the broader S&P 500 and QQQ, Edwards has been picking up some shorter term momentum/relative strength:
With the Market Rover (MR) proprietary trend/trading software algorithm, we can project a possible (EW) trade idea (T-1) price objective of around $93.00 and a (T-2) price objective of around $95.00.
For those who may prefer a more diversified trade vs. the individual (EW) name, the Healthcare Sector also has a potential (T-1) Price objective of around $151.00 and (T-2) objective around $154.00:
By utilizing the Market Rover (MR) software scanning tools, we can capitalize on areas of the market where repositioning and sector rotation is starting to emerge.
The Bottom Line: Sector rotation is hitting the market as everyone repositions themselves for the latter half of the year.
It’s important to keep your finger on the pulse of these trend shifts so you can make your moves, too.
There’s big opportunity growing in the healthcare sector, with trade setups hitting right now.
For healthcare, the arrow is pointing up.
See you on the next one,
JB & Serge
PS – Keeping tabs on these trend shifts doesn’t have to be difficult or complicated. The Market Rover can hand you the info you need to make strong trade decisions with a click of a button – try it now for just $97.
