hedge dude

Wachovia's Rally & Oil's Decline: Rotation from Energy to Financials?

Just Financials short covering helped by easing oil prices... But the story is not over... Do you want to buy Financials and make bottom fishing on that ? I think lots of investors are not willing to sell the sectors where visibility is good like Energy, and buy where the visibility is poor like Financials and Cons Discretionary . It s a dangerous game... It has already happened last month... This game between Financials and Energy is always the same but where is the logic? Structural issues are increasing more and more in terms of Energy supply combined with demographic issues in terms of demand... Does this logic has changed? Are we in a global recession to conclude that crude demand will decrease? No... Are we in a better economic context for the Financials ? No... Inflation is easing? No... Staglation is easing? No... Don t fall in this trap, don t catch this rally because it s not a relief rally.