The Compound and Friends

Never Sell Your Energy Stocks - Nick Colas and Jessica Rabe of DataTrek

55 snips
Mar 30, 2026
Jessica Rabe, co-founder of DataTrek Research who crunches market breadth and oversold thresholds, and Nick Colas, market strategist focused on energy, volatility, and policy, discuss oil’s surge and why energy stocks matter now. They talk historic oil-market links, two-sigma oversold setups, VIX signals, and which policy moves could change the market narrative.
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ADVICE

Never Sell Energy New Highs

  • Do not sell energy stocks when they make new highs because momentum is still in place.
  • Nick Colas advises clients: "you do not sell new highs ever, ever, ever," and recommends staying at least index weight in energy while momentum persists.
INSIGHT

Oil Peaks Signal Market Turning Points

  • Oil price spikes lead markets and can signal equity bottoms long before geopolitical resolution occurs.
  • Nick Colas compares today to 1990 when oil peaked months before the market bottomed, implying markets watch oil as the tell.
INSIGHT

Dividend Discipline Versus GenAI Reinvestment

  • Energy's current rally is driven by high dividend payouts and capital discipline versus tech's high reinvestment into GenAI.
  • Nick contrasts Exxon paying ~50% of net income in dividends with tech reinvesting ~89%, explaining investor preference shifts.
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