Facebook Crashes as Energy Soars: This Chart Shows the Massive Rotation Happening in the Market


Stocks have barely moved this week. You almost wouldn’t guess how much drama is swirling beneath the surface.

Major stocks like Facebook (FB), Amazon.com (AMZN) and Apple (AAPL) have drifted sideways or lower. Meanwhile former laggards in the energy, financial and retail sectors have pushed higher. Market Insights has already covered this trend, which results from optimism business that will soon return to normal.

Today we just wanted to share this chart comparing the SPDR Energy ETF (XLE) with FB. It covers the price action so far in 2021, with a 5-minute intraday interval. Notice how the two lines often move in opposite directions at the same time. Seldom does a chart so clearly illustrate money flowing from one part of the market to another.

5-minute percentage-change chart comparing SPDR Energy ETF (XLE) with Facebook (FB) so far this year.
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David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.