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Why are they rotating out of Energy?
It was just red hot but has been cooling off quickly.
https://www.sectorspdr.com/sectorspd...sector-tracker
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Stocks/Investments Moderator
My guess is that some big firms had nice profits and wanted to sell before a recession hit. Recession fears are probably near all time highs. It doesn't take much to move oil markets. The question is where does that money go and when is oil too cheap.
What's the saying, "markets can stay irrational longer than you can stay solvent". There's probably plenty of oil longs who are sweating now, they're being forced to sell.
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where all of that money go is what everyone trying to figured out, me included. It has been steadily dropping for a few weeks now. Maybe XLC is what they've been going to
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Stocks/Investments Moderator
very possible oil just bottomed on Cramer's comments of it going to $65. Oil spiked on his bearish comments
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Oil prices don't necessarily tie into profitability. Stable markets are much more influential for it.
Energy has been overbought, time to trim. I'd shift into other areas, even foreign markets now.
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Recession fears and energy is a hugely overcrowded trade. Oil and energy is usually the last girl to the rally dance before collapsing when a recession hits. I see this time being no different. Buckle up your seat belts, 2023 is going to be a very bumpy ride for a lot of people.