The indexes managed to stay in positive territory all day, but selling picked up later and there was some stronger rotation out of the recent momentum favorites and back into the big-cap growth names.
Special purpose acquisition companies, electric vehicles, cannabis, bitcoin, oil, solar, and other recent leaders were choppy, while the FATMAAN tech names, semiconductors, and software experienced some positive rotation.
This constant rotation allows individual stocks to correct, while the indexes continue to trend higher. It requires more active trading, but it is good for stock pickers that stay focused on which sectors are performing best.
Much of the market could use a rest and a rotation is a good way to do it. It can be deceptive as it is easy to be caught in the wrong names when it takes place, but if you stay focused on managing trades, it won’t do too much damage.