Much has been made about the sector rotation from tech to “value,” e.g. things like Energy, Financials and value ETFs.

I already went over XLF in an earlier post, and concluded that it was highly overbought and all the “easy gains” have already been made. There is not a lot of upside left in XLF, in my opinion.

What about Value? This is VLUE, iShares’ value stocks ETF:

Weekly RSI of 72.73, more than 10% above all-time highs. Has nearly doubled in a year; basically a straight line up.

Not a whole lot of “value” there in my view.

What about XLE?

Oil prices are rising again, but XLE is still well off its all-time highs. But if you bought it now, you’d be buying at a weekly RSI of 73. Could it go higher? Sure, but a pullback is more likely.

The SPHD (S&P High Dividend, Low Volatility) is even at overbought levels and just a few percentage points shy of all-time highs:

Honestly the beaten-down tech names look like better bargains right now.

Leave a Reply