They Threw the Baby Out with the Tidewater

Offshore energy play, Tidewater, below on its updated daily chart, is just one of many examples in the energy space of cheap (based on valuation) and clearly out of favor stocks which have been pummeled not only in recent months, but also have been overall dead money (sideways) since the 2015 energy bear market.

TDW, itself, has earnings within two weeks. So the issue is not so much taking the plunge to call a bottom for the name here, even though a colorable argument can certainly be made that the stock is near-term stretched to the downside and should be good for a reversion bounce.

Instead, the issue is the overall bifurcated broad market is showing increasing signs of coming under pressure as rates rise again with inflation expectations. Specifically, the leadership at the of market has crowded into NVDA more and more, while beaten-down sectors of years like uranium and precious miners come alive. 

Under that theory, oil, which is turning back higher today, should finally get that rotation alongside oil stocks, all of which are under-owned and cheap.