If you’ve paid any attention to my most recent daily videos, then you probably already know that I’ve been talking nonstop about the gap between the Energy and Communication Services sectors.
There’s a huge difference between the upside gains in energy and the decline of comms stocks.
But this past week, something else was brought to my attention…
Bespoke Investment Group, which provides insightful and up-to-date research to individual investors, just posted an article about the gap. I found this interesting because I’ve been mentioning it for over a month without anyone else picking up on it…
So I thought I’d share this take with you in a video breakdown…
Why the Gap Between the Energy and Communication Services Sectors Is Important
Bespoke’s article is centered around the gap between the Energy and Communication Services sectors.
But what it’s saying is there’s only been six times since the 1990s in which the 100-day performance spread between the hottest and weakest sectors has crossed more than 70 basis points.
I mean, the Communication Services sector is down about 25% year to date while the Energy sector has gained nearly 60% during the same period of time.
When this spread widens out to a certain degree, the markets start to move back in line, or in sync…
And it looks like it’s happening right now!
Check out my short video at the top of this page to see Bespoke’s recent article and learn more about what the gap between the Energy and Communication Services sectors is telling us right now.
Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video, and see what other trade opportunities we’re paying close attention to!
P.S. If you’re one of the traders still waiting for the stock market to crash, don’t hold your breath because I don’t see that happening any time soon.
I also don’t believe stocks are going to snap back to all-highs by tomorrow morning…
But nothing is wrong with that because we don’t need a raging bull market to find success trading stocks.
In fact, I used to think that was the best way to find them until I accidentally created a system that thrives in crashing markets…
So there’s more opportunity out there than most traders realize, especially when you tap into the secret.
