Trade Like Soros

When Soros was betting on the pound's decline he was betting that a tipping point had been reached that had made the idea of the pound's decline irresistible to the general public, to speculators, to policymakers, etc., and that nobody could do anything to prevent it, no matter how irrational it might be.

It's when he sniffs out this type of weakness or strength that Soros will make his biggest bets.

How he "sniffs out weakness" goes one step beyond philosophy and into his own talent. As his own son, Jonathan Soros, put it, "When my father's back hurt he knew he was in a bad trade."

Which is why it's all the more interesting that Soros has made a significant shift in some of his holdings in the past quarter, according to Stockpickr.com.

First off, two new positions that appear to be macro bets include an investment in Energy Select Sector SPDR (XLE Quote) and OIH (Click here to see other Stockpickr portfolios owning OIH). XLE is the Energy sector ETF and OIH is the ETF for the oil services industry. Other portfolios with similar holdings include Clarium Capital and T.Boone Pickens, two investors who believe in the "peak oil theory," which is the idea that we've already gone beyond the tipping point of peak oil production and from here on out our oil supplies will be depleted.