>>>With retail traders flooding into risky 0DTE options at record rates, and I’m teaming up with Lance at 2:30 PM ET to show everyone a smarter way to go after daily payouts without having to gamble on unpredictable moves!<<<
If you’ve been with me for a while, you know I love when seasonality and sector rotation line up — and that’s exactly what we’re seeing heading into August.
Now, let’s get this out of the way…
August isn’t known as a blockbuster month for most sectors. In fact, historically, late summer tends to be choppy, especially during first-year presidential terms. Industrials (XLI), Communications (XLC) and even Energy (XLE) typically pull back during this stretch.
But here’s the good news…
Two sectors tend to shine when the rest of the market is cooling off: Technology (XLK) and Utilities (XLU).
Why?
Let’s start with Utilities.
They’re boring, I get it — but boring works in a market that’s taking a breather. When growth sectors cool down, investors rotate into steady, income-focused names.
Utilities ticked higher on my sector rankings this week, and the historical data backs it up: August has been one of the strongest months for the group over the past decade.
If you’re looking for a lower-volatility play during a potential pullback in an overheated market, this is where you want to be.
Now for the exciting one — the Technology sector and Semiconductors (SMH). Even in softer months, chip stocks like Nvidia (NVDA), AMD (AMD) and Broadcom (AVGO) have shown seasonal strength.
Semis often lead tech rotations, and with global markets outperforming the U.S. year to date, there’s a “catch up” opportunity here. Tech has the potential to absorb some of that flow as investors look for growth names trading below their highs.
Simply put, August is a stock-picker’s month.
It’s not the time to throw darts at the entire market — it’s the time to be selective. I’ll be focusing on Semiconductors for upside momentum and Utilities for steady support while trimming exposure to sectors that historically underperform this month.
The big takeaway?
Don’t fear the seasonal slowdown — use it to rotate into sectors with the strongest historical edge.
We’ll keep covering the strongest ones every morning on Opening Playbook!
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. LIVE AT 2:30 PM ET: A Smarter Way to Go After Daily Income
We’re just about to kick off today’s LIVE briefing…
And we want to make sure you don’t miss what Lance and Graham are about to share…
With retail traders flooding into risky 0DTE options at record rates…
We’re showing a smarter way to go after daily payouts without having to gamble on unpredictable moves.
It’s called the 60-Minute Income Plan and today, we’ll walk you through how we’ve used it to score incredible results so far.
You’ll be fully equipped to go after our next trade as soon as tomorrow morning.
Granted, we can’t make guarantees on the market or trade results…
But the live room is opening at 2:30 p.m. ET.
