It’s begun. Yesterday saw a significant outperformance in secular growth versus mega-cap stocks.

Tech (XLK) and Communication Services (XLC) lagged.

Leadership Board

Ironically, a Tech name led the way, but the rest of the biggest advancers were in Energy (XLE), Health Care (XLV), Industrials (XLI), and Materials (XLB).

Heat Map

Investors are pleased when most stocks rally, even at the expense of mega-cap names. But we have seen fits and false rotation often this year. It’s going to happen, and maybe it has begun. Maybe?

Welcome, December

After a monster November, history suggests meandering early in the first two weeks of this month and then a surge into New Year’s.

I think fireworks will happen a lot sooner.

Today’s Session

The first thing that stood out this morning was the downward reversals in many Tech names that popped up after yesterday's close.

There will be an urge to take profits as smart money tries to get in front of the crowds for 2024.