Flows are rotating into Utilities & Communications Cohort while Cross-Sector Defensive Cohort weakens

🇪🇺 A significant flow shift is underway, with defensive themes sharply increasing their inflows while cyclicals are hemorrhaging. The market’s rotation into utilities and communications is clear, as $NTGY-MC attracted over $50 billion in new flows, confirming a defensive stance among traders. Meanwhile, the largest outflow remains in the Cross-Sector Defensive Cohort, led by SHB-A-ST which shed over $60 billion, signaling a potential peak or pause in the defensive bid. This flow pattern suggests traders are consolidating their defensive bets, but the divergence between the largest inflow and outflow clusters indicates a cautious stance. The next watchpoint is whether inflows into utilities and communication stocks hold steady or fade, which would signal whether the defensive shift is sustainable or losing momentum. A sustained bid in NTGY-MC would confirm that defensive rotation remains dominant, but a fade could hint at a broader risk appetite returning.