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We’re fresh off a couple new trade deals, but stocks are merely limping to new all-time highs today. There’s quite a bit of froth in this tape as the rally approaches the four-month mark. At this point, we’ve got to ask: Can bulls keep this momentum going?

Underneath the surface, we saw a new sector pop into the leaderboard last week.

I have to say, it’s not the most bullish signal, but it could simply be part of a broader rotation. After all, it’s what keeps bull markets alive. 

The Long-Term Trend is Getting Stronger

Healthcare, which has been the worst-performing sector year-to-date, finally showed signs of life last week. It’s traditionally considered as a defensive sector, so naturally, the question is whether this is a sign money is starting to take cover, or whether we’re just seeing a healthy rotation.

I must admit, I’m only interested in healthcare from the biotech standpoint. The sector has been dormant for years but still offers a lot of growth and innovative opportunities. I think it’s waiting on some key regulatory shifts before taking off again.

I remain impressed with the resiliency of the industrials sector, which is solidifying its place as the year-to-date leader. But let’s be real - it’s industrials with a tech twist.

Communications are the one-year leader, and this is bullish in of itself too. We remain in a dip-buying environment.

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