Next Group to Rotate Down?

Xle_92405_5 Looks like a big volume reversal on volume two days ago, then a rally on unimpressive volume today.  Smells like group rotation and/or topping or basing action to me.  Energy stocks have dominated the new-highs list pretty much since Bush invaded Iraq, with over a hundred stocks hitting new 52-week highs per day being pretty common, especially over the past few months.  Friday, however, the energy sector was in 11th place with a lame 4 new highs.  We will know more when we see what happens if/when the energy stocks test their most recent highs.  If it’s weak I expect to do some shorting, at least if I’m near a computer, which actually might not be the case for the next few days while I’m in Mississippi.  Cheers!

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