Market Rotation Into Energy (XLE) The past week there was rotation into Energy (XLE). There is precedent for rotations into energy marking tops and continuing as safe havens during corrections.
In the bottom chart, you see the rotation happening in September 2018, just before three months of market declines (21% on S%P 500 and 24% for Nasdaq).
Looking back further to the 2000 tech bubble, look at stocks like CVX, XOM and SLB. These stocks are going up or sideways while the market is crashing around them.
On the other hand, 2018 these stocks fell along with the market.
So the question is are we in a correction?
If so, is it more like 2000 or 2018?
Have energy stocks been held down while the tech bubble grew?
Will we see energy stocks climb over the next few months?
