The Recent By the Dip is a Little Different, So Says Sector Rotation
'Buy the dip' has been working well, however the latest 'buy the dip' has changed its stripes, it a little different from the rest.
There three buy the dips marked on the charts below (A, B, C), both A and B show the SPDR Consumer Discretionary (XLY) being a leader of relative strength, however C shows SPDR Utilities as the leader of relative strength, and not buy a little, look at the explosion of relative strength into XLU. This means institutions see more value in electric companies with there stable dividends than the higher flying consumer good companies.
This real sector rotation, if you research minor and major market tops of the most recent past this type of rotation is not new.
NOTE: The chart format below are the readtheticker.com Alpha charts for relative strength studies.
SPDR Consumer Discretionary chart
SPDR Utilities chart
"Mathematics is the only exact science. All power under heaven and on earth is given to the man who masters the simple science of mathematics." ~ William D Gann
"If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks" ~ John (Jack) Bogle
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net