In this episode of Sector Spotlight Julius takes a chance and brings in seasonality for next month. Usually we do that on the last Tuesday of the month but this time the last Tuesday, next week, falls exactly on the last day of August and we will be looking at monthly charts then.
Julius starts the show with a look at rotations in asset classes last week and how they blend in with the current weekly rotations on the Relative Rotation Graph.
The main takeaway here is the strength for the USD against most other major currencies on the RRG which is backed by the completion of a large Head & Shoulders top formation in EUR/USD which calls for a major move lower (+ strength for USD).
From a seasonal point of view there are no clear signals that we can follow up with. Industrials would be the sector to look for but the current rotation and the behavior on the chart completely negates the expected seasonal strength.
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