A Controlled Spin… The Rotation trade continues to come strong and steady to start the week, but luckily for US indices it’s taken a more organized form compared to last week’s sloppy Tech-led selloffs. Of course we all knew investors’ inflation-linked concerns weren’t going to magically melt away over the weekend, especially not with Oil making another (temporary) spike higher on reports of an attack on a Saudi site and stimulus headlines reminding $1.9tn in additional aid is coming this month. Add to that more positive vaccine distribution stats and Value sectors are off to the races once again, with Banks / Insurance gaining as the 10-year Treasury yield flirts with the 1.6% level it faded from on Friday. Cyclical spaces Materials and Transports aren’t far behind, with TRAN (+1.8%) hitting a new ATH as airlines (JBLU +9%, UAL +7%, AAL +5%) fly higher on back of TSA data showing a pickup in airport traffic. Energy hasn’t fully joined in the fun but remains green as Crude has retraced its steps. The underperformers are who’s who of the FANG+ crowd: Semis, Autos (really just TSLA), Tech, and Media bring up the rear, though Amazon (AMZN -0.1%) was previously breaking the trend with a boost from David Tepper, whose bullish comments on equities this morning provided a lift to sentiment. Overall it’s more of the same with regards to last week’s themes, but at a much gentler pace that’s kept already strained nerves calm, though we’ll see if that remains the case when Feb CPI data hits the tape tomorrow morning…
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