Hey, Ross here:
Let’s start the day by looking at a sector that has flipped from underperformer – to top performer.
Chart of the Day
This is XLV – an ETF that tracks healthcare stocks in the S&P 500.
In the last four months of 2024, healthcare stocks were a dud, sinking 13% even as the broader index rose by over 6%.
But in 2025, healthcare is actually the top performing sector in the S&P 500.
It’s gone from bottom-of-the-barrel to cream-of-the-crop.
Some may consider this a negative.
But below, I explain why it actually keeps the bull market going.
Insight of the Day
Sector rotation is the lifeblood of the bull market.
Healthcare flipped from underperformer to top performer.
Meanwhile, the tech sector has actually been the worst performing sector in 2025…
After outperforming for many months before.
That’s what we call sector rotation.
And it’s a good thing – because it’s what keeps bull markets going.
Just like broader markets, sectors also need healthy pullbacks.
And while one sector pulls back, another one rises to the front.
That’s what creates sector rotation.
And it’s doubly good news for us traders.
First, it keeps the entire bull market chugging along.
And second, it allows us to target stocks in fast-rising sectors that are just coming out of their respective pullbacks.
This is why I’m not overly concerned with all the pessimism around the tech sector recently.
Because there are always opportunities in other sectors.
And even within the same sector, there are always “sub-sectors” that are rising and falling where we can hunt for opportunities.
Take the AI sector, for example.
Chip stocks are still being battered…
But there’s still tons of opportunities within this one tiny sub-sector that’s critical to the survival of the entire AI market.
Customer Story of the Day
“Dear Ross,
Christian here from Durban, South Africa. I discovered you through Turley Talks which I am an avid follower of.
I find your programs thoroughly informative yet made very simple, highly professional and your approach amazingly accommodating.
I look forward to putting to great use the knowledge and understanding of trading dynamics I am garnering through your program.
Many thanks & God Bless!”
Ross Givens
Editor, Stock Surge Daily
