Over the past few weeks, defensive sector positioning has been stunning. We just had one of the worst starts to a year in history, and while we could be due for a relief rally, we shouldn’t ignore the potential message the first five trading days of the year are sending here. Signals are aligning and confirming we may be in the early stages of a “risk-off” set-up. Several of the risk rotation signals I’m known for have either flipped or are close to doing so. As a rule of thumb, unanimous leadership from sectors traditionally considered safe havens during economic uncertainty – such as utilities, consumer staples, and healthcare –…
