The Traderszone Network

Published in TZ Latest News 3 December, 2016 by The TZ Newswire Staff

Rotation Continues Into Value Stocks, Financials and Energy Still Look Cheap

Two days after the election (November 10), I wrote a message entitled: “Rotation Out of Growth Stocks into Value Stocks Causes Profit-taking in Technology”. We’re seeing a replay of that rotation again this week as technology stocks are underperforming the market while financials, energy, and industrials surge. Chart 1 compares the move to new highs in the S&P 500 Value ETF (black bars) to the weaker action in the S&P 500 Growth ETF (red bars) since the start of November. That rotation can be seen more graphically by the surge in the IVE/IVW ratio over the last month (top of chart).

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