Reward 500 Tiger-coinsDespite $S&P 500(.SPX)$ recently hitting new highs, a new report from Bank of America reveals signs of accelerated selling quietly emerging in the U.S. stock market. Last week saw the largest net outflows in nearly 10 weeks.
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New Highs, but Weak Momentum?
Bank of America strategist noted that the bank’s clients were net sellers overall last week—marking the first time this trend has appeared in three weeks. Institutional investors led the selling, with hedge funds cutting positions for the second straight week, and retail investors also posted their first net outflows in six weeks.
Plus, Trump responded that he would not push the tariff pause beyond July 9. Following his remarks, major U.S. stock indexes turned lower, with the S&P 500 resuming its decline.
However, from a seasonal perspective:
July is the month of the Nasdaq. Going back 10 years, only 2024 posted a negative return. Average return was +2.56% on $Invesco QQQ(QQQ)$
Sector Rotation: Which Stocks Will Play Catch-Up?
Funds are pulling out of tech stocks, with $NVIDIA(NVDA)$ and $Microsoft(MSFT)$ leading the decline, while investors are shifting toward defensive sectors like healthcare. $UnitedHealth(UNH)$ surged 4.5%, driving the $Dow Jones(.DJI)$ higher, and $Amgen(AMGN)$ , $Merck(MRK)$ , and $Johnson & Johnson(JNJ)$ also rallied, becoming standout performers in the market.
Interestingly, during yesterday’s tech pullback, $Apple(AAPL)$ stood out with a strong performance, breaking above its 50-day moving average.
Apple has been in talks with both companies about adopting their large language models and has requested customized versions trained to be compatible with Apple’s cloud infrastructure for testing.
Mag 7 rebound! Compare to May level, who stands out, who lags behind?
Looking back at the performance of the Magnificent 7 in May, only Meta and Microsoft were positive YTD. As of yesterday, only Tesla, Apple, and Google remain in the red YTD—Tesla is the worst performer, down 25% for the year, followed by Apple at -17.01%.
Do you believe in sector rotation? Are you betting on defensive names or expecting Apple to catch up?
With Apple’s forward P/E now close to Meta’s, which would you choose?
Are you bullish on July performance?
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Comments
I do believe in sector rotation, and the recent move into healthcare confirms that. UnitedHealth and Merck are showing strength, while some big tech names like Nvidia and Microsoft face pressure. That said, Apple stood out during the tech dip and is gaining momentum. With its focus on AI integration and a breakout above the 50-day moving average, I think Apple has strong catch-up potential.
I remain cautiously bullish on July, especially with the Nasdaq’s strong seasonal track record. While trimming positions in overbought names, I’m still holding quality tech like Apple.
@Tiger_comments @TigerStars
此外，特朗普迴應稱，他不會推動7月9日之後暫停關稅.在他的講話之後，美國主要股指轉跌，標普500重拾跌勢。
有趣的是，在昨天的科技股回調期間，$蘋果(AAPL)$以強勁的表現脫穎而出，突破50日均線。
Still I choose VOO 😁