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Clear Sector Rotation

We're seeing a little mean reversion in the relationship between tech and the finnies:

This chart is a ratio between tech (XLK) and the financials (XLF). Notice the last time we started to see this relationship cliff-dive: what happened to the overall equities market then? A little bit of recency bias I know, but watch for the scenario of a further squeeze!

by Steven Place

Steven Place is the founder and head trader at