In our May 11th Factor Spotlight, we highlighted that the Oil & Gas sector and Oil commodity factors were being flagged as Overbought in both our US and Macro models. We also discussed the potential readthrough to the Value factor, which was the most correlated factor to Oil & Gas at the time.
In the intervening weeks, these factors have seen a sharp selloff on a cumulative and normalized...
Our Factor Profile tool is currently flagging the Oil & Gas sector in both our equity and macro models as exhibiting "Overbought" conditions. While interesting by itself, there are also implications for other factors that are important to understand and follow. Let's dig in:
Oil, Gas, & Consumables
- In the US market, the Oil, Gas, & Consumable Fuels sector factor has seen a strong rally, up