US Sector Research Note
Tactical Rotation: Asset Management Blockbusters & Power Infrastructure Surge
Quantmatix data as of February 11 highlights a structural rotation in U.S. equities. The S&P 500 closed at 6,941, flat, while the Dow remains above 50,000. Beneath calm index levels, capital is moving away from Technology (💻 XLK) and into Energy (⚡ XLE), Utilities (🏭 XLU), and Homebuilders (🏠 XHB), all with advancing rates above 91%. Defensive infrastructure and yield-sensitive cyclicals are outperforming as the AI capital expenditure narrative reaches a tactical exhaustion ceiling.
Key Market Drivers
US-based Nuveen acquired Schroders Plc for $13.5B, creating a $2.5T AUM global powerhouse 💰.
Anthropic pledged to cover 100% of grid costs for future data centers, supporting Utilities and Energy ⚡.
January jobs +130k eased recession fears, pushing Fed rate-cut expectations to late 2026 📈.
Index & Sector Signals
SPX: Declining Q Score 2.3, Pending Negative, Weekly Mean 6,916 as pivot.
MAGS ETF: Negative Trend Exhaustion triggered; MSFT [-8.9] declining 💻, GOOGL [5.4] under pressure, META [-0.3] holding.
Portfolio Positioning
Bullish / Early Leaders: Energy (⚡ XLE), Utilities (🏭 XLU) → NRG Energy [-4.9] Δ Advancing
Advancing Positive: Homebuilders (🏠 XHB), Oil & Gas (XOP), Industrials (XLI)
Positive / Overweight: Materials (XLB), Consumer Discretionary (XLY)
Neutral / Caution: Real Estate (XLRE), Telecom, Transportation (XTN); Health Care (XLV), Retail (XRT), Semiconductors (XSD)
Exhaustion / Negative: Technology (💻 XLK), Software & Services, Staples (XLP); distribution evident
Highest Conviction Stocks
Top Quantmatix:
ROBLOX (RBLX) 🎮 [-8.3]: Advancing, Positive reversal
PURE STORAGE (PSTG) 💾 [-8.6]: Advancing, storage efficiency leader
CVR ENERGY (CVI) ⚡ [-8.7]: Advancing, leading Energy surge
TEVO:
WR BERKLEY (WRB) 🛡️ [-7.9]: Advancing, core insurance
FORTINET (FTNT) 🔒 [-5.3]: Advancing, tactical swing entry
Delta Reversal:
NRG ENERGY (NRG) 🏭 [-4.9]: Advancing, primary Utilities beneficiary
Tactical De-Risking
Confluent [9.0], Cleveland-Cliffs [7.3], Monster Beverage [8.1], Schwab [8.0] → declining; high-velocity distribution ⚠️
Imperative
Rotate capital into Energy ⚡, Utilities 🏭, Homebuilders 🏠; overweight high-conviction names; monitor SPX Weekly Mean 6,916 as tactical pivot. Capital is not leaving the market — it is changing its address 💼.
Disclaimer:
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