Small Cap Network Blog

Well, while we’re waiting for oil to rally in the shadow of the Georgia/Russia conflict (which may not happen), and while we’re trying to figure out if the dollar’s going to take a break or not, I figure I have the time to share a quick look at some interesting sector trends. In nutshell, the groups that are leading hint that the market is thinking optimistically

.Compare last week’s winners to last week’s losers. That’s going to be the ‘two week’ column, which only includes all of last week plus this week so far.

No surprises to see materials and energy at the bottom of the list. After all, the dollar is stronger, which puts inflation under attack.

However, look at the top of the list….consumer discretionary and technology stocks? It doesn’t exactly scream that the average consumer (or even investor) is thinking timidly right now. If you roll the time frame out to one month, the relative performance doesn’t change.

Maybe it’s just me, but I find it interesting the market is looking first for stocks that tend to get a good jump out of the gate of a new economic expansion cycle. Perhaps the bear is on his death bed.

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