The market has now made an insane rally of nearly 20% in just a few weeks.
But this is not the same market as it was earlier this year, when stocks were surging.
Below is a chart of the homebuilder ETF XHB vs. AAPL. Now granted, this is not a typical “pair trade”, since houses and iPhones are pretty unrelated, but it’s hard to think of anything that was more hated that building homes earlier this year. Apple products were always loved.
But notice today that while the NASDAQ was up 3.3%, the former highflyer $AAPL was only up 1%. It’s not the darling of the market right now. Nobody is rushing into it first. Instead they’re rushing into financials, and houses, and some other weird stuff.
The world is technically back in bull-market territory, but the bull has changed.