What Sectors are Showing Promising Rotations into December.

$DHI $HD $CVCO

Hello Traders,

The bond market is now pricing in a rare December Fed rate cut, which is why Treasury yields are dropping sharply across the curve. Softer inflation trends, easing funding stress, and a cooler macro tone are pushing traders to expect the Fed to move earlier than previously thought.

TLT 0.00%↑ had a strong day today, and the SPX did too—hitting our 6,774 resistance level (posted yesterday) perfectly.

We also had amazing day in XRT 0.00%↑ the sector we’ve discussed with you in detail in our Sunday’s letter and especially stocks like RL 0.00%↑ and VSCO 0.00%↑ that we’ve charted also. Good breakouts there!

REAL-ESTATE SECTOR

As yields fall, smart money is rotating into real-estate stocks, since this sector benefits directly from lower financing costs and improving liquidity conditions. Falling yields boost valuations, ease refinancing pressure, and make real estate one of the most rate-sensitive winners when the market shifts toward early easing.

Here are some stock we’ve picked for you to focus on.