One of the characteristics of the multi year bull market has been rotation. By that I mean sectors take their turn moving the general averages higher. In this last exponential rally in the QQQ and SPY it has been led by the heaviest weighted stocks in the index AI and Chips.

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Last time I indicated to have a look at banks because they look like they could pick up the slack if the current leaders get tired. So far though the bank stocks haven’t shown any interest in stepping up — actually the contrary where the current situation is either rally back from the precipice or a sharp decline in bank stocks is directly ahead. I favor the latter. There just is zero sign of healthy rotation which leaves this market vulnerable to a very nasty slide lower. The old saying the market can stay irrational longer than we can stay solvent applies now, which is why I have largely been out. I do think Oil is ready to move higher again, and I like that sector, Devon Energy and Conoco Philips. 

Thanks,

Joe