If you’ve been with us on Opening Playbook, you’ve probably heard me say this a few times lately — but I’ll say it again…
Sector rotation is alive and well in this market, and it’s creating some of the cleanest setups we’ve seen all year.
Right now, I’m laser-focused on three key sectors that are leading the pack: Industrials (XLI), Communications (XLC) and Technology (XLK).
Industrials
This group doesn’t always get the spotlight, but it’s been a quiet beast. The nuclear theme has given it a major boost, and names in the space are still getting strong institutional interest. XLI is one of the few sectors that barely flinched during the April dip — and it’s been ripping since.
Communications
Meta (META) and Google parent Alphabet (GOOG; GOOGL) continue to anchor XLC’s performance. And even after a few cooling-off periods, the group keeps holding trend. When the market gets shaky, sectors with high-margin, cash-heavy companies like these tend to hold up best. I still like the setup here.
Technology
Everyone’s watching XLK closely — and for good reason. Since mid-April, the entire sector is up over 40%. That’s a staggering move, especially considering how badly it got hit earlier in the year. This tells me buyers are still hungry for growth, especially when it’s tied to AI and chipmakers.
So what does this mean for us?
Simple — if you’re trading directional setups, these are the places to fish. They’re the sectors with trend, momentum and relative strength… and that’s where we want to be focused.
Remember: We don’t need to catch every wave. We just need to find the ones that are already moving and position ourselves accordingly.
Keep XLI, XLC, and XLK on your radar this week. There’s an opportunity here if you’re ready for it.
We break all of this down during the Opening Playbook sessions daily at 10 a.m. ET — see you there!
A Stock to Watch: Starbucks (SBUX)
A seasonal stock to keep on your radar is Starbucks (SBUX), as it tends to be bullish at the start of July.
SBUX has been on a nice run since April, so this seasonal trend has some momentum behind it.
Buying SBUX on July 2 and holding for 24 days has delivered an average return of 3.37% over the past several years. While past performance is no guarantee, it’s definitely worth considering as we move into July.
And wouldn’t you know it, SBUX is up nearly 4% today already.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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