Theory goes like this;
market is divided in sectors, as in hardware, software, financials, cyclicals, oil and gas, drugs, nutz etc ...
Financials institutions (funds and others as well) dump their holding in one sector to chase the next one and bid up prices. Sort of like musical chair. Hope I was not overly simplistic, certainly no offense intended, and certainly didn't mean to be condescendant.
In other words then, they (specifically institutions) rotate from one sector to the other.
sg
All disclaimers apply, take not my advice, do your own research, this is only a web board.
sg |
