Have you noticed renewed interest and investment in stocks outside of the technology sector? It’s actually a bullish stock market signal.
Since 2021, the Magnificent 7 stocks have dominated stock market performance. Most market gains were heavily skewered based on how well Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, and Tesla were doing. Not exactly the sign of a healthy market!
Meanwhile, housing, construction, industrials, defense, and retail struggled during the first part of 2026. Nobody wanted to touch names in those groups, no matter how solid the fundamentals. All anyone could talk about was NVIDIA and other AI-related names.
When equity markets are in a healthy bullish trend, money naturally rotates from asset class to asset class and from sector to sector. This is happening now, which means trade opportunities are starting to open up.
Traders and investors are turning their attention to solid names like Sherwin Williams and Kimberly Clark. And they are making money with far less risk, because these names have lower beta than the market.
This rotation is normal, but even better, it gives more traders and investors a chance to make a decent return outside the most favored names.
Be on the lookout for new opportunities in the stock market here in the US or abroad. You can find names that will perform better than the market. In particular, check out banks/financial services, industrials, energy, retail, and other names tied to consumers’ discretionary spending.
From where I sit, it appears technology stocks are falling out of favor this summer. Don’t ignore the bullish stock market signal that is ringing rather loudly. Instead, be prepared ahead of Q2 earnings season.
