Yields pop and stocks drop
Stocks in interest rate-sensitive sectors like Consumer Staples and Utilities plunged in the last few weeks as rates increased to multi-month highs. The decline pushed a breadth-based indicator that measures oversold conditions to an extreme for both groups, especially relative to the broad market. After similar divergences between defensive sectors and the S&P 500, Consumer Staples and Utilities tend to rally.
Sorry, this content is restricted to SentimenTrader members.
To read this post, please login to your account, sign up for our trading solutions or start a 30-day free trial to ModelEdge reportLogin →