Energy Leads the Charge as Portfolio Performance Improves
Last week the market was tough, but the top five sectors stayed almost the same. Only Consumer Staples moved up one spot. Here are the sector rankings for the new week:
- Energy – XLE (15%)
- Materials – XLB (10%)
- Industrials – XLI (40%)
- Consumer Staples – XLP (25%)
- Utilities – XLU (10%)
- Health Care – XLV
- Real Estate – XLRE
- Communication Services – XLC
- Technology – XLK
- Consumer Discretionary – XLY
- Financials – XLF
Weekly RRG
The weekly Relative Rotation Graph shows Energy pulling far ahead of the other groups. Materials is also moving higher on the strength scale, even though its momentum dipped a little. Consumer Staples is losing a tiny bit of momentum, but not enough to worry. Utilities is climbing strongly into the top‑right quadrant. Industrials stays in the leading area, but its momentum slipped slightly.
All five sectors sit comfortably in the leading zone, confirming that their trends are still strong.
Daily RRG
Looking at the daily chart, Energy sits deep in the leading corner, staying firmly positive. The other four sectors have just finished a short pull‑back and are now regaining speed.
Utilities is swinging from strong to weak and back again – a clear sign of power. Materials, Industrials and Consumer Staples are all picking up momentum and lining up with the weekly trends.
Sector Highlights
Energy
Energy kept climbing almost straight up and closed above 62.50 last week. Its raw strength line broke out of a downtrend, and both RRG lines sit well above 100 and keep rising. Energy is the clear leader.
Materials
Materials made a higher low between $46‑$47 and ended near a key support area. If it moves higher from here, the uptrend should stay alive, helped by a recovering strength line. The RRG lines remain strong despite a small dip in momentum.
Industrials
Industrials appears to be finding the bottom of its rising channel. Holding this level and breaking above the 2023 high on the strength line would confirm a solid trend. As long as prices stay inside the channel, the outlook stays positive.
Consumer Staples
Consumer Staples fell below its old resistance but found support near $80, a level that held previous highs. Keeping that support would create a new higher low and keep the uptrend alive. A rising strength line would confirm the trend seen earlier this year.
Utilities
Utilities stays strong inside its rising channel. Recent lows did not test earlier support, showing that buyers are stepping in earlier. The strength line is ready to break above resistance, and both RRG lines sit above 100 and rise, supporting a positive outlook.
Portfolio Performance Update
The defensive stance of the top‑5 portfolio lifted its performance a lot last week. It used to lag the S&P 500 by about 7‑7.5 %. Now the gap has shrunk to 3.8 % for the cap‑weighted version and 2.5 % for the equal‑weight version. That means the portfolio beat the S&P 500 by roughly 5 % in just one week.
If market swings keep coming, the portfolio could keep gaining and might finally move ahead of the S&P 500 for the first time in a year. It’s early, but the trend looks promising. The next few weeks will tell if the climb continues.
#StaySafe
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