Chart of the Day - Monday, May 3rd, 2021

Today’s Chart of the Day was shared by Louis Sykes (@haumicharts). The chatter on the street today was all about Sell in May & Go Away, but perhaps the better move is to Rotate in May & Go Away. The chart shows Growth vs. Value over the past 14-months ($IWF/$IWD). You may remember, this ratio broke down in favor of Value in late February. Growth staged a nice rebound in March-April. However, that rebound fizzled out recently as the ratio retested the level it broke down from in February. As Louis points out, Value outperformed Growth in a meaningful way today, which begs the question - was that it for Growth?  Interest rates are an important catalyst to watch for this relationship. Keep in mind, Value caught a bid as interest rates were spiking in late February. If rates pick back up, it will likely put pressure on this ratio in favor of Value.