The pain trade is higher.

Recap from last week:

• “Energy vs QQQ is back. Expect a bounce back in energy for the week.”

  • (XLE +10.22% vs QQQ +4.46%)

• “USD weakness helps bid energy, which will also help raise interest rates”

  • (USD -0.79% & WTI +4.41%)

• “Call option volatility and skews are very firm as there is growing sense that this rally is different and might be able to continue.”