Trading Places: Energy And Financials

July 24, 2008 at 1:21 pm  ·  Category: Market Commentary, Technical Analysis

Despite the action in the financials today, the surge in financials and selloff in energy of late is something to watch.  Check out BeSpoke’s post, with the beautiful charts, today: “Trading Places: Energy And Financials”.

A couple weeks ago I told you: “The Current Leaders Will Be Taken Out Back And Shot Before It’s Over”, Top Gun FP, July 8.

I think we could be seeing some sector rotation within the overall bear market.  The financials have made most of their downward move in my opinion.  I’m not going to say the lows of July 15 are definitely going to hold.  But I don’t see the financials leading on the downside anymore. 

Instead, I expect the commodity stocks to lead the next leg down.  They’re the only group with a lot of room to run on the downside.  And long commodities is a crowded trade.  When it happens, and it looks like it’s already gotten started, it should be fast and furious.  Get ready, Get ready.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
No Responses to “Trading Places: Energy And Financials”
  • No Clue if your prediction is on target but the video and music were really enterrtaining. Thanks.

    alex  ·  Jul 25, 2008 at 4:42 am  ·  Permalink

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