The buzz word this year has been “SECTOR ROTATION”, the minute one sector takes off for a few days it settles down and then the weakest starts to move up. In other words, it has been a mean reverting market, last year’s losers are this year’s biggest winners; ENERGY, METALS.
With that being said, the XLE (energy ETF) is down five days in a row, and many energy stocks are as well. AR, CENX, are two of interest at this very moment. They both are retesting multi-month breakouts which I expect that they will hold, and if mean reversion takes effect again then these are great entry points.
ETF’S are for the most part mean reverting vehicles; anytime they are down 5-6 days in a row it peaks my interest along with the stocks within the sector.