How Quickly Things Change:

No one ever said investing was an easy endeavor and the last few months have certainly confirmed that. Below is a chart I like to post from time to time from The Novel Investor. And one can see from just 3 weeks ago energy had a 20 percentage point lead over its nearest major S&P sector competitor and the end of the first half of ’21. As of Monday that lead evaporated, in a collapse similar to the New York Mets in 2007. The XLE is now less than 1% underneath real estate via the XLRE, and the second best sector now this year as of Tuesdays CLOSE. I was one to believe that the group would go wire to wire this year, and that will now have to be played out. The XLE is now a quick 16% off recent highs, and witnessing some distribution with big volume losing weeks ending 6/18 and last week off 5.4 and 7.9% respectively (the XOP recorded a Doji candle Monday, which are adept at calling for prevailing trend changes, and this ETF reversed off the very round par number just a couple weeks ago). Give credit to the OIH bouncing off its upward sloping 200 day SMA Monday too.

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