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

🇪🇺 A clear flow shift is underway as defensive themes dominate trading activity, signaling a cautious tone in equities. Despite nearly equal counts of inflows and outflows, the largest outflow from the Cross-Sector Defensive Cohort tops $52.5 billion, while utilities and communications see a massive inflow of $43.4 billion led by $NTGY-MC. This indicates a significant rotation away from broad defensive plays into specific utility and communication stocks. The concentrated inflow into NTGY-MC and the simultaneous outflow from other defensive leaders suggest a nuanced shift within the defensive space rather than a wholesale retreat. The next test is whether utilities and communications sustain this momentum, confirming that the rotation is selective rather than a blanket risk-off move. Watch for a sustained bid in NTGY-MC as a key signal that the flow shift is gaining traction.