As defensives like Healthcare stocks and oddballs/outsiders like gold stocks and some commodities weaken in the short-term, Wayne & Garth start to think they will…
…per the year-end plan.
As per this morning’s Notes, a whiff of rotation is in the air. After all sorts of Tech stocks got hammered, it appears that, pending a potentially dangerous FOMC meeting, a rotation back to risk and over-valuation from defensive and value is in progress.
As you can see, Healthcare relative to SPY/SPX is dropping after hitting what we projected could be a high point. Adding to the near-term spec bull narrative is the QQQ/SPY ratio, breaking back above its 50 day average.
Just a picture and some thoughts on short-term market internals for your consideration.
