Is This Time Is Like That Other Time?

First, here's a throwback to earlier this year when Energy was breaking out above its March 2000 lows relative to Technology.

If you recall, this was just after wall street convinced investors that ESG and all that green energy nonsense was a good idea.

In case you hadn't heard, Wall Street made a ton of money from this scam. Investors who fell for it had the exact opposite experience.

Here's what this ratio, that we called "The Trade of a Generation", looked like just before the breakout:

Fast forward to the present and you can see just how well this ratio has done.

The Long Energy / Short Technology trade has worked beautifully.

But even if you didn't put the pair trade on, and instead just focused on owning energy and staying away from Tech, you made out great.

And that's my bigger point here.

It's less about the pair trade itself, and more about profiting from the unwind in positioning:

What a homerun trade this has been.

But I think another similar setup is brewing.

What are the two best sectors historically when rates are rising?

Energy and....

and....

and....

Financials.

And wouldn't you know it, interest rates have been going up.

And when you look at the Financials vs Technology spread, doesn't it look eerily familiar to the setup earlier this year in Energy?

Again, pushing back up against those March 2000 lows when Technology stocks peaked and the Tech bubble burst.

Once Energy was able to get back above that hump, it was straight, "To the moon", as the kids say these days.

Well, Financials are doing the exact same thing.

As they should in this environment right?

There are Bank stocks and other Financials that we're buying. But we're only focused on the very best ones.

We went over each setup in the sector last night during our Live Conference Call.

Premium Members make sure to watch the replay here.

Or you can skip right to the Trade Ideas page or our NEW Rangefinder App, which organizes them and sorts them the best.

Let me know if you have any questions.

And if you don't have access to the call or to Rangefinder yet, please email me so we can get you set up.

You don't want to miss this call. We went over everything you need to know, and then some.

Let me know what you think!

- JC