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Is Energy Next For The Big Money?

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Let's talk It's A Market Of Stocks" for a moment. One thing we've seen all year while in range bound chop fest mode in the indexes before the August cliff dive is that of rotation, rotation out of and of course rotation into. Just look at all the darlings earlier this year off the November 2014 lows like SWKS, AMBA, NXPI, AVGO, QRVO and PANW and the like through May and then some.

The darlings of one upward market ramp up become the next batch of taken to the woodshed names in the next market pullback and its no secret the most recent batch of darlings in the market in the form of Bio Tech went into cardiac arrest. This is a big under the surface theme we've seen over the last year.

Folks, a lot of money stays in the markets due to a mandate to stay close to fully invested so it has to find a home. This is where rotation comes into play. Money gets rotated out of and into so lets take a look at money that from the looks of it technically is finding a home and getting rotated into.

Take a look at INTC here from the August Cliff Dive lows.

There came a time when it was beat up and in the gutter with no entry points to be had on the long side aside from trying to catch a falling knife. Until?

Until it staged a First Thrust Up (blue box) , Pullback Off Highs pattern (pink lines) that set the stage for a spring board launch. This combination is often seen at the start of new uptrends in stocks.

Now we are seeing this combination show up all over the place in the energy sector. In fact, our weekend newsletter features eight stocks and ETFs with this type of pattern.

To learn of them and trade them in tandem with us, sign up for our free newsletter.


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