After struggling with the rotation out of the growth trade, consumer discretionary stocks have come roaring back. Energy prices remain high and that’s been more than enough to keep energy stocks in their familiar leadership position. Industrials remain perhaps the weakest of the cyclical sectors here, but they’re managing to still create a nice little run of their own lately.

Energy is still the hot sector to own. Industrials again participated in last week’s cyclical leadership, which is a good sign for the sustainability of this trend. Small-caps look a little weaker than I’d expect. If Treasuries yields continue to move higher here, there’s a good chance we see the value of the dollar rise as well.

The energy sector is roaring ahead in a way we really haven’t seen since early on in 2021. Treasury yields have begun leveling off, but financials continue to push higher as the cyclical trade picks up steam. After lagging in a remarkably consistent fashion since the beginning of last summer, industrials finally staged a recovery versus the broader market.