Heading into today’s open, the S&P 500 is at 765.61, down -0.36%. The Nasdaq Composite (QQQ) closed yesterday at $736.53, -0.53%, amid concerns around rising rates, with the 10-Year Treasury Yield currently at 5.24%. Volatility, as measured by the VIX, is at 16.13.
This week we're leaning into Semiconductors (SMH), Growth/Tech (QQQ), and Healthcare/Defensive (XLV). SMH stands out with +8.5% one-month momentum and is trading above its 50-day trend. QQQ also displays positive momentum at +2.8% and remains above its 50-day trend, suggesting continued strength in tech. Finally, Healthcare/Defensive (XLV) with +0.1% momentum, is macro-favored given current economic uncertainty and also trades above its 50-day trend.
Last week, Energy (XLE) delivered a +0.46% return, while Healthcare/Defensive (XLV) lagged with a -0.59% return. This highlights the importance of adapting to shifting momentum, as defensive plays weren't enough to overcome broader market pressures last week.
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