On the PreMarket Prep Plus "Wednesday’s With Wedbush" segment, Sahak Manuelian, managing director and head of equity trading at the firm, was the special guest.
Sahak discussed a few different topics that are relevant to the current market environment. The first: the sector rotation flows over the last three months and moving forward.
While the current rotation has favored financials, consumer discretionary and energy supporting the reflation trade, aided by a healthy consumer, defensive issues have lagged —utilities, staples and health care.
Heading into the end of the year, health care looks interesting. Manuelian noted the sector has the most inflows last week of any S&P sector per Bloomberg.
The biotech sector is weighing on the group; it's stuck in a "nasty consolidation zone," he said.
One positive has been that the SPDR S&P Biotech XBI held at an important support level ($122) and has had a “huge move to the upside since last Thursday.”
Manuelian addressed this author's statement that the “elephant in the room” is the future actions of Jerome Powell and the Federal Reserve Bank with respect to tapering and the potential raising of interest rates.
Powell has “telegraphed his intentions” and Manuelian will be paying close attention to whether or not he says anything unexpected, he told PreMarket Prep Plus.
When addressing the broad market, he maintains the “technical backdrop for remains on strong footing and the fundamentals provide a tailwind for stocks and the path of least resistance remains higher.”
The full discussion with Manuelian from Wednesday’s show can be found here:
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