Remember The Phrase “Barbell?”

Remember the incessant and nauseating word “transitory”. Not too long ago market pundits were stating that the energy group was offering good diversification as the lower rung in a barbell approach against the strong technology group. Certainly, things change quickly as energy has been a very firm leader in 2021 overall, with some brief drawdowns. There may be some rotation out of the group into year-end if technology continues to get its groove back and PMs look to sell winners to fund their tech purchases. Even if that occurs expect any weakness to be temporary, and use it as an opportunity. Look for leadership which for me comes with the likes of DVN and CLR, among many others. Both of these names have traded with round number theory. DVN between the 30-40 numbers, and CLR around the 40-50 figures. CLR in fact CLOSED above 50 Thursday, after what was looking like a pullback with a doji candle Tuesday and spinning top on Wednesday which often signal fatigue. It could still happen but remember bull markets have a tendency of not letting you in (rarely pullback when looking for it and having to pay higher PRICES once one sells their position).

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