Tuesday, October 4, 2011
Closer to Bottom
It's hard to guess the exact bottom when markets around the world are all sliding down. But it should be close to the bottom. For two consecutive days, XLK is stronger than the S&P 500, and XLU led the market down. XLU was the star in the August, September crash. It climbed to a 52-week high recently while every other sectors suffered. Clearly money was hiding in the traditional defensive sector during the market meltdown. Now with XLU being weak and XLK being strong, those money is flowing out the pit where they were hibernating for the harsh winter to embrace a warm spring. I sense the spring is coming.