Mike Larson | Editor-in-Chief
There’s sector rotation. Then there’s what happened over the last few days! The high-momentum groups leading us to the upside, like tech and chips, are now withering...while the less-popular, less-exciting names, like consumer staples and health care, are shining.
Check out this MoneyShow Chart of the Day. It shows the performance of the iShares Semiconductor ETF (SOXX), the State Street Technology Select Sector SPDR ETF (XLK), the State Street Consumer Staples Select Sector SPDR ETF (XLP), and the State Street Health Care Select Sector SPDR ETF (XLV) in the last five trading days through yesterday afternoon.
SOXX, XLK, XLP, XLV (5-Day % Change)
Source: TradingView
The gap is Grand Canyon-sized! You can see the SOXX (the red line) tanked 10.1% and the XLK (green) fell 4.6%, while the XLP (blue) rose 3% and the XLV (orange) climbed 4.3%.
For some perspective, the semiconductor ETF was outperforming the health care ETF by a whopping 120 PERCENTAGE POINTS year-to-date as of June 22. That advantage has now essentially been cut in half – in just over a month.
What gives? Concerns are growing about massive borrow-and-spend plans by top US hyperscalers – and whether all the capex investment will ever pay off. Throw in worries (again) about “circular” deal-making in the AI industry and tech stock oversupply courtesy of the IPO boom, and you can see why investors are looking for new winners.
In fact, we’ve seen an on again/off again shift into new sectors for weeks now. It’s one reason I included the following bullet point in my presentation last week at the 2026 MoneyShow Masters Symposium Las Vegas: “Recent strength in small caps, financials, health care, industrials, etc. could be the start of something more. Diversify!”
And yes, that’s what I’ll repeat here for good measure.
Buy and hold may work in the long run, but most investors can’t stomach the massive drawdowns and long stretches of flat markets. John Bollinger, CFA, CMT, and Zoe Bollinger, CFP and president, at Bollinger Capital Management, reveal why so many investors get shaken out at the wrong time and how a tactical approach can help solve the problem.
In this session, they break down why 60/40 portfolios fall short, how disciplined market timing works, and why diversifying across assets and signals can outperform buy and hold. Their tested approach cut drawdowns while boosting returns — proving you can beat the market.
Tired of drawdowns, worried about rebounds, or curious about tactical investing? This session gives you practical insights for smarter portfolios.
The market finished lower last week, but the story beneath the surface was more constructive than the headlines may have suggested. Indeed, the list of vulnerable units did not expand – and the iShares Russell 2000 ETF (IWM) remained within its range, notes Buff Dormeier, chief technical analyst at Kingsview Partners.
On Monday, crude oil tumbled and Treasury yields fell for a second consecutive day – but that wasn't enough to lift the major indices. It may be the safest choice to simply follow trends, price, volume, and market reaction to news. The Invesco QQQ Trust (QQQ) is a great current example of why, advises John Eade, president of Argus Research.
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