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Watch out for the BIG ROTATION (Trump-effect)

Watch out for the BIG ROTATION (Trump-effect)

Especially Industrials and Financials got a boost since Wednesday, 9th Nov. 2016, post-Trump-election day. On the other hand NASDAQ-100- and Consumer-Staples- stocks took a hit since then:

The BIG Rotation (XLP, XLF, XLI versus NDX, DJIA), Nov. 2016

Furthermore, the Small-Caps-Stocks-Index, the Russell 2000 (RUT) strongly outperformed the standard broad-market Indices like the S&P 500 (SPX) and the Nasdaq-100 (NDX) in recent days, as can be seen in the following chart (Status "today": market-close Friday, 11th Nov. 2016):

Small-cap shares had the biggest single-day rally over the larger peers in five years on Wednesday, 9th Nov. 2016, according to data compiled by Bloomberg.

The Russell 2000 Index surged 3.1%, compared with a gain in the S&P 500 Index of 1.1%. The reason may be speculation Trump's homeward-looking policies will favor the more domestic small-cap index. You can follow the ongoing rotations, if still in effect the following days in this near-real-time chart (updated automatically):

Another argument: looser financial regulations touted by Trump could provide a relief to banks and insurers, which have a heavier weighting in the Russell 2000 Index (RUT) than in the S&P 500 (SPX). The small-cap index (RUT) rallied 1.6% to ca. 1,251.6 on Thursday in New York for the fifth straight advance, the longest streak since July 2016.

Here another near-real-time-chart, which is covering the last 10 trading-days:

link "Russel 2000" - the big outperformer: