Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon, today is Wednesday, July 17th, and I'm your host Kim Khan. Our top story so far.

Rotation rotation rotation. Money within equities continues to seek safer shores.

Growth is selling off again with the NASDAQ

tumbling 2.5 percent, the S&P down more than 1 percent, and the Dow, which

missed most of the AI excitement in the recent rally, bucking the trend again and topping 41,000 for the first time.

Underscoring the rotation trade, B of A's latest fund manager survey, showed long magnificent 7 remained the most crowded trade. 71% of money managers identified the trade as crowded,

the biggest crowding survey answer since long U.S. Tech in October 2020.

The survey also showed that investors are overweight utilities for the first time

since February 2009, raising allocation to the defensive sector by 20 percentage points

month over month. That's the biggest monthly increase on record.

Only four S&P sectors are lower, but three of them are mega cap homes,

with Infotech taking the brunt of the selling. Chips are tumbling off about 5%. Money is rotating to cyclical

and defensive sectors. Energy is the top performing sector followed by real

estate and consumer staples. Unlike the past few sessions though, small caps are not getting a rotation boost.

The Russell 2000 is hovering around the unchanged line after topping January 2022 highs recently

and breaking out of a two and a half year resistance level.

Gold is also taking a breather after hitting an all-time high yesterday, but Citi says the

yellow metal could hit $3,000 per ounce as financial flows show potential for significant expansion.

Citi emphasized the recent inflows into Bullion ETS, which posted net inflows in June for

the first time in the trailing 12 months, with July continuing the trend, potentially

foreshadowing a critical reversal of a 43-month net-destocking trend totaling some 925 tons.

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