Sector Spotlight: The Bulls Are In Control

Market Recap For July 20th, 2022

Wednesday’s forecast had stocks moving higher, they didn’t disappoint. Although not quite the day that Tuesday was, all major indices ended firmly in the green.

Yesterday’s close was a bullish one, and so is the larger picture. Even if a pullback develops first, higher prices should be coming.

Yesterday’s Sector Performance

Discretionary stocks moved back into the top spot on Wednesday.

Utilities were the weakest, again, but this time they finished in the red.

Five-Day Sector Performance

Discretionary stocks are still on top this week, but Tech and Energy are close.

Utilities are still the only sector meaningfully in the red.

ETF Trade Watch

Technology Select Sector SPDR (XLK)

Consumer Discretionary Select Sector SPDR (XLY)

Markets have been moving higher consistently over the past few days, with that should come an extra hint of skepticism for market participants as the smart money begins to take profits. As the Wall Street insiders make their gains, they will inevitably move to take profits only to deploy them at lower prices.

However, assuming the rally holds on a bit longer, Discretionary and Technology stocks look like top performers, and that’s good news for the XLK and XLY. Tech especially as this industry tends to experience the highest amount of growth, so investors accept the risk of future earnings in exchange for massive growth potential.