Hi, something happened over the last 24 hours that's such a clean example of rotation, I wanted to write it down while it's still fresh.
Yesterday, money crowded into the biggest tech names in the market. The Nasdaq still closed red on the day, but the mega-cap tech ETF finished up close to 2%. Defensive sectors like healthcare and utilities actually lost ground. Even on a day that closed red, capital was clearly picking favorites inside the selloff.
Then today flipped the entire script, Trump told NATO the ceasefire with Iran is over, oil jumped more than 6%, almost every sector turned red (except energy and consumer staples), even yesterday's tech winners gave it all back.
That's rotation in its purest form: capital finding whatever feels safest at that exact moment, sitting there, and moving again the second the story changes.
Anyone else watching this play out today? What you're doing differently because of it?