Chart of the Day - Thursday, October 24, 2024

🏆 Today's Chart of the Day was shared by Rob Anderson (@_rob_anderson). 
 

• With the election 11 days away, Rob points out that the seasonal trend for high-beta sectors is about to turn bullish.
   
• The ratio in blue represents election year seasonality for Cyclical vs. Defensive sectors based on 12 election years since 1972. Cyclical sectors include Energy, Materials, Industrials, Discretionary, Financials, Tech, and Communications. 
   
• Rob points out that Cyclicals have historically started to outperform Defensive sectors a week before Election Day, with outperformance typically lasting 12 months. 
   

Takeaway: In presidential election years, Cyclical sectors have historically turned bullish relative to Defensive sectors a week before the election.