Last week:
“We prefer to lean against the current overwhelming negative consensus…”
XLE>XOP
KWEB>SPY
SLV>GLD
We STILL prefer to lean against the current consensus. The market narrative WILL TRANSITION from “inflation worries” to “growth concerns”. Use draw-downs as opportunities.
Trading one asset class is trading blind.
Big breakout, but expect the S&P outperform KWEB in the short-term.
The trend is still higher in yields and XLE.
Equal Weight S&P continuing to make new highs.
In bear markets, XLE almost always outperforms XOP.
Last week’s watch-list made new relative highs. Rare earth and lithium miners. BHP +6.43% last week alone
Return always wants its risk payment. NOT INVESTMENT ADVICE.