{"id":15777,"date":"2025-03-11T00:02:34","date_gmt":"2025-03-11T00:02:34","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/03\/11\/the-best-five-sectors-10\/"},"modified":"2025-03-11T00:02:34","modified_gmt":"2025-03-11T00:02:34","slug":"the-best-five-sectors-10","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/03\/11\/the-best-five-sectors-10\/","title":{"rendered":"The Best Five Sectors, #10"},"content":{"rendered":"
\n

Sector Shake-Up: Defensive Moves and Tech\u2019s Tumble<\/h3>\n

Last week\u2019s market volatility stirred up the sector rankings, with 6 out of 11 sectors changing positions. While the top three remain steady, we see a clear rotation from cyclical to more defensive sectors. Let\u2019s dive into the details and see what the charts tell us.<\/p>\n

The weekly sector ranking has undergone some significant changes. Communication Services (XLC) is holding firm. Financials (XLF) is maintaining position. Consumer discretionary remains steady, but is showing weakness. Consumer Staples (XLP) is the new entrant to the top 5, while Utilities (XLU) Holds its ground at #5.<\/p>\n

The big story here is the rise of defensive sectors. Health Care (XLV) made a notable jump from 10th to 6th place, while Technology (XLK) took a nosedive from 4th to 10th. This shift is characteristic of the broader shift from cyclical to defensive plays.<\/p>\n

The New Sector Lineup<\/h3>\n

(1) Communication Services \u2013 (XLC)<\/strong>
\n(2) Financials \u2013 (XLF)<\/strong>
\n(3) Consumer Discretionary \u2013 (XLY)<\/strong>
\n(6) Consumer Staples \u2013 (XLP)*<\/strong>
\n(5) Utilities \u2013 (XLU)<\/strong>
\n(10) Healthcare \u2013 (XLV)*<\/em>
\n(9) Real-Estate \u2013 (XLRE)*<\/em>
\n(7) Industrials \u2013 (XLI)*<\/em>
\n(8) Energy \u2013 (XLE)*<\/em>
\n(4) Technology \u2013 (XLK)*<\/em>
\n(11) Materials \u2013 (XLB)<\/em><\/p>\n

Weekly RRG: A Tale of Two Sides<\/h2>\n

The weekly Relative Rotation Graph (RRG), printed above, paints an interesting picture. We see only three sectors on the right-hand side of the graph, with the rest clustered on the left. But their movements are telling:<\/p>\n

XLC is in the leading quadrant, moving northeast \u2014 a positive sign.
\nXLF has turned back up into the leading quadrant, reinforcing its #2 spot.
\nXLY is in the weakening quadrant with a long tail, heading towards lagging \u2014 a potential red flag.<\/p>\n

On the left side:<\/p>\n

XLK\u2019s rotation is clearly weak, pushing further into the lagging quadrant.
\nMeanwhile, XLP and XLU show strength, moving with positive RRG headings in the improving quadrant.<\/p>\n

Daily RRG: Confirming the Weekly Story<\/h2>\n<\/p>\n

When we look at the daily RRG, we get some additional context:<\/p>\n

XLC has curled up in the weakening quadrant, supporting its positive weekly rotation.
\nXLF is confirming its positive move in the leading quadrant.
\nXLY is the outlier \u2014 its short tail in the lagging quadrant doesn\u2019t bode well for maintaining its #3 position.
\nXLP shows the strongest RS ratio reading on the daily chart, complementing its positive weekly movement.
\nXLU has lost some relative momentum over the last day, but nothing too concerning at this point.<\/p>\n

The Top Five Charts<\/h2>\n

Communication Services \u2013 XLC<\/h4>\n<\/p>\n

XLC is playing around with its old resistance line, now expected to act as support. Monday\u2019s price action shows a slight revival, but it\u2019s too early to call. The relative strength remains robust, with a clear series of higher highs and higher lows on the raw RS line.<\/p>\n

Financials \u2013 XLF<\/h4>\n<\/p>\n

XLF has broken its rising support line and completed a toppish formation. We\u2019re now eyeing the next support level, around $47.25. Despite this, XLF\u2019s relative performance remains strong, with both RRG lines moving higher.<\/p>\n

Consumer Discretionary \u2013 XLY<\/h4>\n<\/p>\n

After completing a top formation, XLY is now testing support around 200. It appears to be moving back into its old rising channel \u2014 and if my rule holds true, we might see it test the lower boundary. This suggests significant downside risk for the sector.<\/p>\n

Consumer Staples \u2013 XLP<\/h4>\n<\/p>\n

XLP, the newcomer to the top 5, is pushing against overhead resistance in the $83.50-84 area. A break here could give the sector a significant boost. The improvement in relative strength is already evident, pulling both RRG lines higher.<\/p>\n

Utilities \u2013 XLU<\/h4>\n<\/p>\n

XLU remains in a sideways pattern, potentially settling into a narrower range between $75.50 and $80.50.<\/p>\n

Its relative strength is also range-bound but still pulling both RRG lines up \u2014 enough to keep it in the top 5.<\/p>\n

Portfolio Performance Update<\/h2>\n<\/p>\n

The technology position was exited and swapped for the consumer staples position against Monday\u2019s opening prices.<\/p>\n

As of about 45 minutes after opening, the portfolio performance stands at -3.19% since inception, compared to the SPY benchmark at -3.39%. We\u2019re about 20 basis points ahead \u2014 not making a big dent, but keeping pace with the S&P 500 for now.<\/p>\n

Going forward, I\u2019ll be including both the performance table and the list of open positions in these articles for better tracking.<\/p>\n

Summary<\/h2>\n

The market\u2019s rotation towards defensive sectors is becoming increasingly evident. Consumer discretionary looks vulnerable, while consumer staples and utilities show strength.<\/p>\n

#StayAlert, \u2013Julius<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Sector Shake-Up: Defensive Moves and Tech\u2019s Tumble Last week\u2019s market volatility stirred up the sector rankings, with 6 out of 11 sectors changing positions. While the top three remain steady, we see a clear rotation from cyclical to more defensive sectors. Let\u2019s dive into the details and see what the charts tell us. The weekly […]<\/p>\n","protected":false},"author":0,"featured_media":15778,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-15777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=15777"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15777\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/15778"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=15777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=15777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=15777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}