US EQUITY SECTOR ROTATION MONITOR
February 18, 2021
By Andres Talero
WRITING SAMPLE - NOT CURRENT
Energy and Financials continue to rise as indexes reach new highs
US equity indexes where little changed overall last week, retreating after reaching new all-time highs. The S&P 500 (SPY ETF) is up 5% this year, the and Dow Jones Industrial Average (DIA ETF) is up 3.5% and Nasdaq 100 stocks (QQQ ETF) are up 6%. The equal weight S&P (RSP-ETF) is up 6% this year and previously lagging sectors have been outperforming.
Index volatility (VIX Index) has stabilized above 20 after spiking above 30 two weeks back.
S&P 500 sectors were mixed last week. The best performing sectors were energy (XLE ETF) which was up 6%, and financials (XLF ETF) which was up 3%. The energy sector is up 22% in 2021 and the financials sector is up 9%.
Other sectors were little changed for the week or traded down, with utilities (XLU ETF) being the worse performer and loosing 2% of its value.
Small caps (IWM ETF) retreated 2% during the week but are up 14% in 2021. Growth (IWF ETF), and value (IWD ETF) sectors were little changed for the week.
DISCL0SURE OF RELATED SECURITIES HOLDINGS:
QQQ AND RSP PUT SPREADS HELD AS PORTFOLIO HEDGES.