Bonds Down ~4% Last Week, Where will the Money Flow?

I have to keep it short today but I wanted to talk about the action last week, specifically bonds ($

). S&P 500 ($

) fell around 1.5 percent for the week, which is only a blip in this bullish trend. The bonds ($

) on the other hand fell~ 4.0 percent last week and are down ~10 percent the last month. This is the type of rotation that we want to pay attention to if we are bullish on the market. There was quite a bit of money moved out of the bond market last week, and this money needs to be cycled somewhere. So, where will it go? I think finance ($

) & healthcare ($

) may be sectors to put on the radar. Both held up well last week in the market weakness. What I have been staying away from is Utilities ($

), they do not hold up well in environments where rates could be on the move to the upside. I am also watching regional banks ($

) and broker-dealer ($

). Each has shown relative strength. If rate hikes come more of a reality than just a sound bite, these stocks sectors would benefit. Finally for you biotech ($

) traders, this sector has been strong. Be careful, this sector is looking frothy. Have a great trading day!

"previous post: Dow Theorists Watch the Transports ($

)

Check out the video below for more color on the rotation: