Rolling Bull Market:
Perhaps it is time to start mentioning the old “rolling bull market” phrase we used to hear of incessantly. More so this year as technology, which is usually a dominant theme, has given way to other groups to hold the baton as the XLK gets some well-deserved rest in 2021. Of course, we know that energy has been near the top of the major S&P 11 sector leaderboard all year thus far. We spoke recently of the financials gathering steam, and the real estate group which always seems to be flying under the radar. The XLB and XLI, the materials and industrial spaces, are neck and neck for the fifth-best major S&P sector actor on a YTD basis, each putting up a respectable 20% so far. Rotation is the key to healthy rallies, but bears may pan the groups that are doing the heavy lifting this year, especially energy. The material’s strength recently shows an economy on the rebound. Chemical names and more importantly packaging names are rising to the top. Aluminum and steel capture the most attention but dig deeper and one shall find other stellar opportunities.