It takes a long time for market to top. Many time tops look like corrections, sucking in dip buyers. The oil top is being registered now and lot of commentators and analyst are now saying that it has topped. What happened to 100 oil scenario.
The question is where will the large sums of money from oil stocks liquidation flow. Which sectors will the money flow in to.
You know the answer to that. Many months ago I have said which will be the next sector to attract serious buying an start of potential secular trend.
oil sector has put in a long term top.
June 16, 2006 post
The energy sector has seen a multi year high. Expect many years of under performance from this sector. The bounce in last two days does not matter. Majority of these stocks are not going to see their high again. Alternative fuel, coal, oil, gas all these sectors will not regain the leadership for long time to come. Every rally in the energy sector is a shorting opportunity.