Energy vs Tech could be the monster mean reversion of a lifetime

Check out my Chart o’ the Day from Jon Krinsky, I love this stuff. It gets right to heart of all the things we talk about here – cyclical vs secular, and how to tell which is which, value vs growth, innovation vs entrenchment, etc.

Energy vs. Technology – the daily RSI hit 9 yesterday, the lowest reading since we have GICS data back to 1990. Interestingly, the ratio itself is nearing its all-time low made on March 24th, 2000 which was of course the all-time high for the Nasdaq 100.

Source:

Stranger Things… Energy vs. Tech spread most oversold since at least 1990, reversion likely… 
Baycrest Partners – February 5th, 2020

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