The performance of stocks at the index level may be causing concern for some market participants, and understandably so. The Dow has sold off for eight days in a row, which is enough to raise the eyebrows of the market’s trend-followers.But last week saw the Nasdaq continue its surge to new all-time highs again. And those that keep up with how I read the tape know that this is something I love to see – the Nasdaq leading to the upside.So, while I’m not discounting a bit of churn near the all-time highs in stocks, I’m still content with what I’m seeing under the surface of the indices. Check out these new sector performance rankings…
The Bread and Circus of the Markets
Those that keep up with the Sector Leader Bullseye report have been fully aware about how communications (XLC) have been dominating the tape over the past year. In fact, its year-to-date performance is over 40%.What amazes me is how little this has been discussed amongst the investment community. We know that the press has a twinkle in their eye for the Magnificent Seven names, and technically speaking, Alphabet (Google) and Meta are included in the communications sector.There’s been a great focus on the broader tech sector, and let’s be real – there is a lot of overlap with the communications sector and the technology sector. But what XLC’s leadership does tell us is that the flows into growth sectors have been specific and more oriented towards internet names.We’re moving into the world of Web 3.0. Crypto is a big part of this, and artificial intelligence will be too. And believe it or not, quantum computing will find its way into this space. It’s likely we’re going to have to completely rethink how we approach digital security.In many ways, the future is right on the market’s doorstep. But isn’t it always? If quantum computing does even half of what its advocates say it can do, then maybe it opens the way for a more biometrically-oriented technological future.To be clear – I’m not saying I want this, but as market participants, it’s our job to observe and position ourselves within trends that are beyond our control. It’s something we’ll continue to monitor closely.More By This Author:The Market Is Breaking BadHow To “Back Up (And Park) The Cyber Truck” For TeslaThis Fundamental Factor Can Boost Your Trading Game
