MT Live Market Briefing 5-13-26 – Sectors – Stocks

Technical Market Briefing Overview

In today’s MT Live Market Briefing, we took a deep dive into sector rotation, relative strength, and how to quickly assess where institutional money is flowing using our ETF and sector analysis process.

With the S&P 500 trading near all-time highs, we discussed why traders and investors must avoid becoming emotionally bullish simply because prices are elevated. Instead, we focused on objective analysis and what the charts are actually telling us beneath the surface.

One area we reviewed closely was the Semiconductor Index (SMH), which is now trading roughly 30% above its 50-MA — an historically extreme level. While strength should never be argued with, extensions of that magnitude become increasingly difficult to sustain over time. Understanding the difference between strength and unsustainable extension is critical for proper risk management.

Using our proprietary ETF matrices and relative strength lists, we walked through how the green checkmarks provide an instant visual assessment of trend alignment and momentum. Subscribers could quickly see:
• Which sectors remain above key moving averages
• Which sectors improved from the prior week
• Which sectors weakened beneath the 20-MA or 50-MA
• Where momentum continues to accelerate
• Where relative weakness is beginning to appear

This allows traders to evaluate the market at a glance rather than becoming overwhelmed by hundreds of charts or endless opinions in the media.

We also drilled down into the individual stocks inside the sector ETFs and sorted them by relative strength to identify where institutional money is flowing into — and where it is leaving. Strong sectors often contain the strongest trading candidates, while weak sectors tend to produce the weakest charts and poorest opportunities.

This top-down process is exactly how we approach market analysis inside the Advisory Swing & Options Trader and ETF Investment Trader letters:
Market → Sector → Industry → Individual Stock.

Rather than chasing headlines, predictions, or indicators, we focus on objective price analysis, moving average alignment, relative strength, and sector rotation to keep traders aligned with the strongest opportunities and away from weaker areas of the market.

The MT Live sessions continue to help traders learn how to simplify market analysis, organize watchlists properly, and understand what professional money flow looks like in real time.