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Witha slew of stocks across the energy sector getting beaten up, are you just itching to buy on the decline?Although top trader Steve Grasso concedes energy stocks look cheap, he says don’t hit the buy button just yet.According to Grasso you can't trade energy until you get the go ahead from technology and financials.
Huh?!Both tech stocks and bank stocks have led the market in 2012. And during that time the general philosophy in the market has been 'stick with what's working.' In other words, buy high and sell higher.
But Grasso feels dynamics in the market are changing.
“But you have to wait for the leaders to break before the laggards can be bought,” Grasso explains.
“Only when we see when the XLK break down and only when we see the XLF break down, only then would I go into the XLE,” he says.
"That’s will be the signal investors are tired of throwing money at tech and financials."
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