Energy Reversion to mean 2017

When 90% of the stocks in the Energy Sector are bullish it usually means there is no one left to buy.  As you can see with this equal weighted percent chart you see a rotation in the market (2009, 2013, Dec 2016) back to levels where Institutions accumulate positions.  I will pair back my holdings in this sector significantly from when I purchased them a year ago when there where only 4% of the names in the Energy Sector bullish.

Update...A few hours later after I posted this blog note, RBC Warns January is setting up for a "Massive Mean Reversion Month"