Oil and energy stocks have been moving into a stealth bear market rally over the last two months, and that’s not a good thing for the market from a historical perspective.
Energy traders are one of the fastest groups to sniff out opportunities when oil and other energy commodities are ready to shoot higher. They’ve even better at identifying concerns for the market, cutting their risks and profiting from declines in the energy complex.
The last four months have seen a tectonic shift in the energy sector that goes well beyond price corrections or weakness. This is a serious long-term momentum situation.
This post originally appeared at Money Morning.