16Nov10:47 amEST

Still Ain't Got No Vaccine for Fossil Fuels

The Moderna vaccine news this morning may very well feel like a mere repeat of last Monday morning's Pfizer vaccine gap higher.

However, the larger issue for me is the rotation underway. 

These vaccine headlines seem more like an excuse rather than grandiose catalyst for money to head into financials, insurers, energy, materials, ags, etc.. 

I went long a few names in those sectors earlier this morning inside Market Chess Subscription Services, and am eyeing several other long ideas as I expect capital to slowly but surely (and then more forcefully as it becomes painfully obvious) leave growth tech names and head down to cheap and deep values. I know it does not seem like those names will ever falter--After all, AMZN is still in a dominant position as a firm in many respects.

But the market is signaling that rates are headed higher which, as we discussed previously on this website and with Members, is likely to have an adverse effect on mega cap tech growth winners, heretofore. 

On that note, LNC, which owns the naming rights to the Philadelphia Eagles' home field, is just one example of the many charts I am seeing in the finance/insurance space: Last Monday's gap higher was no fluke. We saw a tight bull flag which is resolving higher yet again, pushing higher above the 200-day moving average. 

Indeed, this is a major change in market regime and not to be overlooked or trivialized. 

Weekend Overview and Analysi... Insurance Stocks and Chill


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