Stocks trade most often on the fundamentals of the underlying company.
Sometimes, though, we see periods of time where a group of stocks will trade as a group because of various factors.
These periods are called “sector rotations”.
This can happen because of a perception about the fundamentals of that group. It can also happen because of the nature of investor positioning.
Most often it happens because of both…
Right now, we are seeing a big sector rotation OUT of technology and some of the highest return areas.
In particular, it is impacting one of the best groups of the last decade – the “Software-as-a-Service” or “SaaS” sector.
In this weeks issue of HX Trader, we take advantage of this rotation to buy another SaaS winner.
