The Recent By the Dip is a Little Different, So Says Sector Rotation

By: readtheticker | Mon, Apr 28, 2014
Print Email
Spinning Top

'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 Alpha charts for relative strength studies.

SPDR Consumer Discretionary chart

SPDR Consumer Discretionary chart
Larger Image

SPDR Utilities chart

SPDR Utilities chart
Larger Image

Investing Quote

"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: does allow users to load objects and text on charts, however some annotations are by a free third party image tool named




Author: readtheticker


We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. provides online stock and index charts with commentary. We are not brokers, bankers, financial planners, hedge fund traders or investment advisors, we are private investors.

LEGAL DISCLAIMER: The material is presented for educational purposes only and may contain errors or omissions and are subject to change without notice. (or 'RTT') members and or associates are NOT responsible for any actions you may take on any comments, advice,annotations or advertisement presented in this content. This material is not presented to be a recommendation to buy or sell any financial instrument (including but not limited to stocks, forex, options, bonds or futures, on any exchange in the world) or as 'investment advice'. members may have a position in any company or security mentioned herein.

Copyright © 2011-2015

All Images, XHTML Renderings, and Source Code Copyright ©



Source: The Contrarian Take