Trading Places: Energy and Financials

For the last several months, going long Energy and short Financials has been a trade that has just printed money.  However, if you piled into the trade in the last few weeks, you're feeling some pain. 

The charts below show the relative strength of the Energy and Financial sectors versus the S&P 500.  While the energy sector appears to have broken its uptrend, the Financial sector still has some work to do on the upside before we can say that it has bottomed.

click to enlarge

Comments

[NLFEnergy]

This won't occur for long, the underlying fundamentals do not line up for the financial sector.

[paultaut]

here, here

[AmesTiedeman]

For a day?