Read the full article on Traders' Insight.
Excerpt:
- Sector rotation has been ongoing for the last two months while the spotlight has been on the massive tech stocks
- We identify and profile a pair of cyclicals and one defensive company with unusual earnings reports on tap
- Pay close attention to management guidance and economic outlooks as the second half presses on
The market has a different feel today than it did two months ago. No longer are the mega-caps powering the S&P 500 higher. Rather, small caps, cyclicals, and even defensive niches are providing a blue-chip boost. That’s highlighted perhaps most starkly in the Dow Jones Industrial Average’s recent winning streak. As we embark on the heart of earnings season—when all of the tech-related stalwarts report Q2 results—traders will weigh whether the market environment since June 1 has been a corrective blip or if we are indeed in a new regime with emerging leadership.