Jim Cramer has some thoughts on the market rotations and how to keep an eye out for them.
"Rotations seem like tremendous mysteries when they occur. They seem so oblique, hidden, even inexplicable," Cramer wrote in his Real Money column. "And then you look back and realize "what the heck was I doing still buying the industrial stocks at the top," or "why didn't I switch back to companies that have super growth no matter what." How did that rotation fool me!"
"Yes, they are that maddening. They can really sneak up on you. For example, go take a look at the last two months of charts for the stocks of Snowflake (SNOW) or DocuSign (DOCU) or CrowdStrike (CRWD) . Examine those of Square (SQ) , Tesla (TSLA) and PayPal (PYPL) . Take a hard look at Zscaler (Z) . You know what you see? You will see a whole bunch of patterns that look almost exactly the same. You will see stocks that had been in hideous decline and that decline ended right around May 12 of this year. Since then these stocks have been on an almost non-stop run-up. It's been torrid and, strangely, it's finally being talked about and noticed right now," he continued. "What happened that day to make things turn so hard? Was it something pandemic-related? Pre-opening, post-opening? Some wayward earnings number? Presidential proclamation? Covid variant? Nope."