And the Winner Is...

Here's what to watch in the coming weeks as the market digests vaccine news… November 20, 2020 UNSUBSCRIBE | ARCHIVES And the Winner Is… "Warning! The Fed is rigging markets" You need to see this urgent warning about the Fed.   This warning is NOT a best guess about things to come…   It’s not a prediction about what the Fed may or may not do in the near future. It’s a warning about what the Fed is doing… right now!  You only have a few hours left to see what’s going on. Click here to see the full warning now. Dear Money & Crisis Reader, The market is undergoing a rotation courtesy of the vaccine news. Rotation is when capital moves from one sector to another. Typically, capital moves from winning industries, to industries that are lagging behind. In our current market, this would mean money moving from the tech sector, which has been THE market leader since the March lows, into areas like energy and financial stocks: two of the worst performing sectors. And that is indeed what we saw this week in the markets, with energy (XLE) returning 10%, financials (XLF)returning 3% and tech (XLK) essentially flat. THE issue for the markets now is whether or not this trend continues. If it does, it would suggest the economy will continue to open up. Reflation plays (plays associated with economic resurgence) will become THE market leaders where you want to put your money. If it doesn’t — if XLE and XLF roll over while XLK begins to rally again — this would suggest the economy will be moving back into lockdowns again. That environment favors tech which is one of the few sectors that can grow when people are forced to stay at home. Will These Trends Continue? With that in mind, let’s take a look at some ratio charts for energy vs. tech (XLE:XLK) and financials vs. tech (XLF:XLK). January 15: America's Financial Extinction Event? The election is over… The corrupt media declared Joe Biden the winner… And that bad news is about to get a whole lot worse… Because the prophetic analyst who predicted the subprime mortgage meltdown… the financial crisis of 2008… and Brexit… Just issued another shocking prediction… If you and your family are not prepared for what he says is coming your way on January 15… You need to take action now. Click here for the full details. A ratio chart is a chart that shows the relative performance of one asset class against another. If Asset Class A, outperforms Asset Class B, then the chart rallies. If Asset Class B outperforms Asset Class A, the chart falls. Let’s take a look. XLE:XLK has hit against overhead resistance (red line). I would not have expected this line to break on the first try. So, this is the critical level to watch over the next week or so. If this ratio breaks above that red line, then we are likely entering a period in which energy will outperform tech in the intermediate term (weeks to months). XLF:XLK has formed a rounded bottom. It too has run into overhead resistance. Here again I would not have expected that line to break on the first attempt. So, this is the line to watch in the next week or so. If this ratio breaks above that red line, then we are likely entering a period in which financials will outperform tech in the intermediate term (weeks to months). Depending on which way these charts break, we’ll either get a new massive rotation into reflation plays, or a move back into tech plays. This will determine the overall market’s action for the coming weeks and months. As such it’s where I’m focusing my attention for clues of what’s to come. Best Regards, Graham Summers Editor, Money & Crisis The Internet as we know it is about to change forever Early applications of this “new Internet” already created more than 13,000 millionaires. I’m betting that over the next few years, it will create more. Click here now for more details. To end your Money & Crisis e-mail subscription and associated external offers sent from Money & Crisis, feel free to click here. If you are having trouble receiving your Money & Crisis subscription, you can ensure its arrival in your mailbox by whitelisting Money & Crisis. Money & Crisis is committed to protecting and respecting your privacy. Please read our Privacy Statement. For any further comments or concerns please email us at MoneyAndCrisis@threefounderspublishing.com. Three Founders Publishing, LLC. 808 Saint Paul Street, Baltimore MD 21202. Nothing in this e-mail should be considered personalized financial advice. 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