MAP: Energy sector triggers overbought signal (1/17/2018)
Our MAP ratio for the Energy sector triggered an overbought signal. Looking back at history, these signals have been powerful predictors of pullbacks.
It’s basically saying the level of institutional buying is too high and unsustainable. We expect the Energy sector to pullback and expect bearish action is ahead.The average 6-week return for the Energy sector post the signal is -2.67%.
