I think it is safe to say that “Risk On” has been the theme in the very early going of 2018. Taking a look at the top and bottom twenty industries on a median percentage return basis thus far is quite telling…
Median Return Two Weeks (Gainers)
Median Return Two Weeks (Losers)
The bulk of the groups which are down in 2018 thus far are the safety plays like REITS and Utility stocks. The out performers are airlines, energy plays, 3D printing and Chinese Tech stocks. Without a shadow of a doubt we are in an environment where being long risk is rewarded, and safety stocks are being punished.
Look what happened this past week:
Everything rallied with the exception of the two most defensive groups, consumer staples and utilities which fell.
Still, some want to fight the market. They want to successfully call 20 of the last ZERO market tops. They want to take a contrarian approach and “expand their shorts” against a fierce bull market.
Gooooooooood luck with that.
Knee deep in research here in OmahaCharts Labs. Back with more soon.
OC