Rotation Ongoing:

If one was able to skirt the weakness in energy and the banks, and were overweight technology the recent pain would not be as formidable. Of course, that is a lot easier said than done. It was not too long ago that we were talking about how the Dow was leading, and now it is lower by 4% YTD, while the Nasdaq is up 9%, S&P 500 by 1%, and the Russell 2000 is off 1% thus far in 2023. These major benchmarks have played musical chairs at different points in the first quarter which is quickly coming to a close in a couple of weeks. Semis have been holding their own, and software is starting to sprout while others groups falter. Below is the chart of the Nasdaq which has been catching some rotation, perhaps out of energy (OIH was down 9% at one point Wednesday). The tech-heavy benchmark was a clear “leader” again UNCH on the session while the Dow and S&P 500 were both off to the tune of nearly 1%. Respect strength. META is acting well POST breakout from a cup with handle 190.46 on Tuesday. GOOGL feels like it’s coming to life too.

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