It's the last Tuesday of the month which means that Julius will highlight interesting seasonal patterns for various sectors and explore if they are aligning with the current rotations on the Relative Rotation Graph. It looks like August has some interesting seasonal anomalies that are worth exploring. Seven out of the 11 sectors are showing significantly high or low percentages in terms of seasonal outperformance. Four of these sectors are currently showing tails on the RRG that align with their seasonal patterns which makes them worth keeping an eye on in the coming month.
In the overview for asset classes and sectors Julius assesses the rotations and price moves over the last two weeks and concludes that despite the recovery of last week, after the dip the week before, the bigger picture still keeps him cautious. Only two to three sectors are on a positive trajectory vs the S&P 500 and on the weekly chart the negative divergence continues to build up. All in all the upside looks arduous while ease of movement seems to be to the downside.
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