Perking Up:

The 11 major S&P sectors are beginning to see a slight shift regarding strength. Below is a look at all of them over the last one month period. We know October was a very kind month to overall markets, and investors are wondering if the mid-term election seasonality will start to put at least a tactical bid under stocks. One can see the thirst for value-oriented groups, and the industrials are leading the way, along with materials, financials, real estate, and energy being the fifth best actor of the bunch (is that a sign of new leadership forthcoming or a market about to lose its general thus far YTD?). Every subsector within the XLI is higher over the last month and the laggard is waste management plays, the very group that was leading early on in 2022. Rotation inside is a healthy thing as it gives former stalwarts a chance to catch their breath. Diversified industrials have been the ruler with names like HON and GE up between 20-30% over the time frame. The XLI is looking for its fourth straight WEEKLY gain with the last 3 all CLOSING at or very near the top of the range. Will par halt its progress as it did in August, an area of former support for a year-long period between April ’21-April ’22?

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