Archive

March 18, 2025

Browsing

Big Moves in Sector Ranking

The ranking of US sectors continues to shift. At last week’s close, we saw another big shake-up. All defensive sectors are now in the top five. Technology dropped to last place, while Consumer Discretionary tumbled from #3 last week to #9. Within the top five, Consumer Staples gained one position, Healthcare entered at the #4 spot, and Utilities remained steady at #5.

The New Sector Lineup

  1. (1) Communication Services – (XLC)
  2. (2) Financials – (XLF)
  3. (4) Consumer Staples – (XLP)*
  4. (6) Healthcare – (XLV)*
  5. (5) Utilities – (XLU)
  6. (9) Energy – (XLE)*
  7. (8) Industrials – (XLI)*
  8. (7) Real-Estate – (XLRE)*
  9. (3) Consumer Discretionary – (XLY)*
  10. (11) Materials – (XLB)*
  11. (4) Technology – (XLK)*

Weekly RRG: Defensive Sectors On The Rise

The weekly RRG above shows continued strength for the defensive sectors. All three—Utilities, Healthcare, and Consumer Staples—are still in the improving quadrant but show long tails and strong RRG headings.

Communication Services and Financials remain in the lead(ing quadrant) at positive RRG-Headings. However, the weakness of the Consumer Discretionary sector is starting to take its toll, and the sector dropped out of the top five while still inside the weakening quadrant.

Daily RRG: Small Losses of Relative Momentum

On the daily RRG:

  • Utilities continue at a positive RRG-Heading.
  • Healthcare and Consumer Staples are rolling over but still have high RS-Ratio values. Their long, improving tails on the weekly chart justify their high positions in the ranking.
  • Communication Services and Financials are inside the weakening quadrant but have short tails. The high readings on the weekly RRG keep these two sectors at the top of the list.

Communication Services

XLC bounced off its lows last week and remains above the rising support line.

Relative Strength continues to improve, keeping this sector high in the ranking.

Financials

XLF also bounced off support, but the formation remains one with “toppy” characteristics.

Relative strength, on the other hand, remains strong which keeps this sector at the #2 position in the top five.

Consumer Staples

Last week, XLP completed a nasty outside bar, bearish engulfing in candlestick terms. The week’s low almost touched the support level near 78 and then bounced slightly. XLP should not break this support level to maintain a positive price outlook.

The RS-Line remains in the process of slowly turning the long-term downtrend around. The RRG-Lines are still both pointing upward, putting the tail on a positive RRG-Heading.

Healthcare

XLV entered the top five based on its turnaround in relative strength. The sharp upward move in both RRG lines positions the sector inside the improving quadrant.

From a price perspective, a trading range seems to be emerging between 135 and 150.

Utilities

XLU remains stable in its trading range, in terms of price and relative strength.

Portfolio Performance Update

The Consumer Discretionary position was closed against the open price at the opening this Monday.

Due to the price changes in the other positions, I had to do a bit of rebalancing to get everything back in line to (around) 20% of the portfolio. This meant selling small parts of Utilities, Financials, and Communication services to finance the purchase of the new Healthcare position.

Due to the big decline in XLY, and XLK the week before that, the performance of the portfolio is now 0.7% behind SPY since inception. RRG portfolio is at -4%, while SPY is at -3.3%.

#StayAlert, -Julius


Britain’s King Charles and Queen Camilla are set to visit Pope Francis during their trip to Italy and the Vatican in April despite the pontiff’s ill-health following his hospitalization around a month ago.

The announcement of the royal visit is likely to be read as an indication that the Vatican believes the pope will be out of hospital in the coming weeks.

As part of the four-day state visit, Charles and Camilla are expected to visit the Holy See to join Pope Francis in celebrating Jubilee year – or Holy Year – which takes place every quarter of a century and is focused on forgiveness and reconciliation.

Francis has been in Rome’s Gemelli hospital since mid-February with no timeline for his release.

The royal trip, from April 7 to 10, would be a “historic visit” and a “significant step forward in relations between the Catholic Church and Church of England,” Buckingham Palace said Tuesday.

Despite the turbulent past of the Reformation and King Henry VIII’s break with Rome almost 500 years ago, relations between the Vatican and the British monarchy are today marked by warmth and mutual respect.

The UK and the Holy See have had full diplomatic relations since 1982. As Prince of Wales, Charles visited Vatican City on five occasions.

The King and Queen are expected to attend a service at the Sistine Chapel “focused on the theme of ‘care for creation,’ reflecting Pope Francis’ and His Majesty’s long-standing commitment to nature,” the palace said.

Charles and Francis are both passionate defenders of the environment and champion the importance of interfaith dialogue.

GET OUR FREE ROYAL NEWSLETTER

    The royal visit was first announced on February 7, just one week before Francis was admitted to hospital with a “respiratory tract infection,” which was later diagnosed as pneumonia.

    He has remained in hospital since then, in what is his longest stay since his election as pope 12 years ago.

    The pontiff remains in a stable condition but still requires medical treatment, the Vatican press office said Monday, adding that Francis was able to pray and carry out a small amount of work duties.

    On Sunday, the Vatican released the first photo of Francis since his hospitalization, showing him at the chapel in Gemelli hospital.

    Charles and Camilla’s visit will also be an opportunity to shore up the relationship between Italy and the United Kingdom, with the royal couple carrying out engagements in Rome and Ravenna in the northern Emilia-Romagna region.

    This post appeared first on cnn.com

    Over a double cheeseburger and fries, Robert F. Kennedy Jr. told Fox News host Sean Hannity earlier this month of his plans to improve the country’s health by incentivizing companies to step away from processed foods.

    From across the red high-top table of a Florida Steak ’n Shake, the health and human services secretary went on to praise the Indianapolis-based fast-food chain as a shining example of change since it began cooking its shoestring fries in beef tallow instead of one of the many seed oils that have become targets of Kennedy’s health agenda.

    “Steak ’n Shake has been great,” Kennedy said. “We’re very grateful to them for RFK’ing the french fries.”

    The nationally televised praise marked the latest conservative endorsement for Steak ’n Shake, a 91-year-old company with 450 locations nationwide that has become one of the most high-profile businesses to support Kennedy’s “Make America Healthy Again” agenda — a move that has been boosted by Republican politicians and MAGA influencers including Rep. Anna Paulina Luna, Charlie Kirk, Laura Loomer, Kari Lake, Tony Shaffer and Benny Johnson.

    “I just had a cheeseburger and fries cooked in beef tallow today for lunch! Delicious!!” Rep. Marjorie Taylor Greene, R-Ga., wrote on X.

    At a time when many companies might be looking to avoid politics, Steak ’n Shake is opting to publicly align itself with Kennedy and other high-profile conservatives. On social media, the brand has transformed its feed from the usual steam of burgers and shakes into a near nonstop stream of Trump-adjacent iconography: Elon Musk, Teslas, Fox News clips and even a red hat emblazoned with the words “Make Frying Oil Tallow Again,” a version of which is available for purchase on Kennedy’s MAHA merchandise website.

    The company has not publicly embraced Trump or any of his policies but has been full-throated in its embrace of Kennedy.

    “We support MAHA,” Steak ’n Shake Chief Operations Officer Dan Edwards told NBC News last week. “Restaurant chains like ours would like to meet customer demand for better quality.”

    Edwards said support for the company is “across the political spectrum” and that “there is nothing political about great-tasting fries.” He did not answer specifically whether the company had any fears about alienating customers who do not support Kennedy’s MAHA agenda or Trump.

    “We are grateful to Secretary Kennedy for his leadership and for raising awareness about beef tallow,” he added.

    It’s a bold move for a company that has weathered a rocky financial situation that forced the reported closure of 200 locations since 2018. While there is a wide array of relatively new and small brands that have sought to capitalize on the strength and passion of the MAGA movement, few, if any, established companies have shifted their public identity so quickly.

    Politics aside, Steak ’n Shake’s choice to focus on seed oils comes with its own controversy.

    The MAHA agenda, helmed by Kennedy, features several health-focused concerns of questionable veracity, including skepticism of the food and drug industry, fluoride in water and vaccines. Seed oils have also long been a target of unfounded theories about negative health impacts, some of which Kenney has touted, calling them “one of the most unhealthy ingredients we have in foods.”

    Health experts have sought to counter those claims, noting that replacing seed oils with saturated fats offers little to no dietary benefit and can end up doing harm.

    Maya Vadiveloo, an associate professor at the University of Rhode Island who specializes in nutrition, said it is “well established that saturated fats are linked to an increased risk of heart disease, while vegetable oils, including oils from seeds, protect heart health.”

    Edwards said that while the burger brand supports Kennedy’s MAHA movement, Steak ’n Shake CEO Sardar Biglari, who acquired the company in 2008, has been trying to move to beef tallow for some time.

    “My boss asked, ‘Why should Europeans have better fries than Americans?’” Edwards said. “My boss said one day that we need to RFK the fries. So, a verb was invented.”

    As for the company’s sudden shift on social media, Edwards said the posts “sometimes are aspirational,” noting that “sometimes we refer to space or Mars.”

    “NASA and Musk/SpaceX are the only two viable players in the area. We have referred to both,” Edwards said. “Regardless of politics, we admire Musk’s accomplishments.”

    In February, Tesla wrote on X that it had signed a deal to build charging stations at several Steak ’n Shake locations after the fast food joint responded to Musk’s compliment on its fries. Edwards said discussions with Tesla and Steak ’n Shake started more than 18 months ago.

    Steak ’n Shake’s shift hasn’t been entirely smooth. The Bulwark reported that the chain’s move inspired some in the MAHA world to look deeper at the company’s food practices, finding that its fries were precooked in seed oils. The company later acknowledged on its website that some of its foods arrived at locations prefried, and that the initial frying had been in seed oils.

    However, Edwards said, because Kennedy has advocated for the removal of seed oils “completely,” the company is making a commitment to do so. And while he did not provide details as to how Hannity’s interview with Kennedy came about, he did say that when the Fox News host “calls, we answer.”

    “Sean Hannity is the best. He knows the restaurant business,” he said. “We are honored Sean Hannity and Secretary Kennedy visited Steak ’n Shake.”

    This post appeared first on NBC NEWS