Boulder Energy (BXO)

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Our BNN pro-cyclical theme holding up despite a disappointing data day

Earlier this week we wrote "Here comes the changing of the guard" reflecting our sense that insiders are favouring cyclical over defensive names. That theme is being put to the test in light of today's negative GDP numbers in both Canada and the U.S. As of mid-day, cyclical and reflation-oriented stocks are holding up rather well. On a combined basis, the Materials Select Sector SPDR (XLB*US) and Energy Select Sector SPDR (XLE*US) ETFs are outperforming the broad market SPDR S&P 500 Trust (SPY*US) ETF.

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