The Trade of a Generation
We've recognized this, obviously, so our attention has been focused on Natural Resources, as you're well aware.
But what if I now threw something out there like The Trade of a Generation?
How does that make you feel?
Like I'm full of shit?
Yea me too. It also makes me feel like I sound pretty full of shit.
But just for fun, let's just go with it.
What happens if Energy gets back above those former March 2020 lows relative to Technology. Can we see a similar trend to what we saw in the 2000s?
Early in my career it was Natural Resources that were dominating the returns. Tech was an after thought.
What if we're seeing that again?
The pair trade here is quite obvious: Long Energy / Short Technology if this ratio is above those March 2000 lows. Both ETFs are liquid so this trade is easy to put on. There are some inverse ETFs that you can find as well.
And this isn't a short-term trade. This could be a serious trend that lasts a long time.
Investors are not positioned for it. So unwinds like this can be very powerful.
We'll be talking about all this and much more tonight:
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We're gonna rip through more than 100 charts in about an hour, and you'll have all the information you need to get this market figured out.