Here's to sounding like a broken record! But… when the broken record keeps churning out the profits, like it has, I'm all ears.
Of course, I've been saying that this market is going to continue going up – over and over again.
And I've been proven right; the charts don't lie. In fact, this past Friday, the last trading day of September, we notched the 9th all-time closing high in the S&P 500. That means we will have set new all-time highs on more than 45% of the trading days this month!
But the way this has played out in September is even more impressive, and what it means for the month ahead is just as important.
That's because the sectors that were the strongest in the first eight months of the year have fallen off this month – and yet the market has remained strong.
The bears are saying that's an ominous sign, but it's no such thing.
Let's dig into this in a bit more detail with this chart…
The Surprising Sectors Wagging the Dog Right Now
Most of you who follow U.S. markets know that 2017 has been dominated by big tech with a resurgence in the healthcare sector. Utilities and materials have also been strong.
But in September, tech in general, and the FANGMA stocks – Facebook, Amazon, Netflix, Google (Alphabet), Microsoft, and Apple – in particular, stayed underwater.
Out of the six, only Netflix was in the green for the month of September until Alphabet popped during the last three trading days of the month.
But that's not what's so interesting about this.
You see, on the flip side, a transformation happened this past month for the worst-performing sectors. The four worst performers in Bloomberg's list of 11 sectors have been energy, telecom, consumer staples, and financials.
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.