Today's Flat Market Is Way More Bullish Than You realise


Photo: Jasper Juinen/Getty Images

A quick observation for a lazy Friday afternoon…While the market is pretty much exactly flat, the market is internally much more interesting.

The leading sectors of the S&P are:

  • Basic materials +2.34%
  • Oil & Gas: +1.32%
  • Financials: +0.94%

And the losing sectors are:

  • Telecommunications: -0.87%
  • Consumer goods: -0.44%
  • Technology -0.34%
  • Utilities -0.24%
  • Health Care -0.10%

The gist?

People are buying the cyclical stuff like the materials and financials. And they’re selling the defensive utilities, health care, and telecom.

Part of the mix can be explained by heightened odds of QE (people betting on higher commodity values). So while values are flat, the “right” sectors are leading.

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