Election week is here, but don’t let that you lose sight of the Fed’s upcoming rate cut on Thursday.
As traders, we like to operate under the assumption that the market has a better sense of what’s really going on compared to the news or even opinion polls.
The good news is that the sector leadership rankings continue to point towards bulls having the advantage of this market.
My point is to not let this week’s headlines catch you off balance, or cause you to make a poor decision.
Check out the updated sector box score…
Comms Can Thank Google
Now that we’re past the bulk of big tech earnings, we can sit back and thank stocks like Alphabet (GOOGL), and even Netflix (NFLX), for their positive responses post-earnings.
This sent XLC, the communications sector ETF, to new all-time highs, and cemented it as the top-performing sector year-to-date.
I must admit, XLC’s leadership is allowing me to look the other way a bit when it comes to the broader tech sector (XLK).
I think once we get past the election jitters this week, we can start to see tech outperform again. Financials (XLF) sticking around the one-month and one-year leadership spots is not the signal you’d see if we were about to have a banking system meltdown either.
Next week’s Tale of the Tape should be even more exciting.
Talk soon,
Gianni
