Work the Truce in SOX, OSX Duel

This column was originally published on RealMoney on Nov. 15 at 1:38 p.m. EST. It's being republished as a bonus for TheStreet.com readers.

What's this I spy? A Semiconductor Index (SOX Quote) rally and an Oil Service Index (OSX Quote) rally? We haven't had too many of those. I wonder if we are finally at a level where these two antagonists for mutual-fund dollars have reached equilibrium.

We've had some pretty peculiar patterns of late, but one of the strangest has been the dueling momentum between these two groups. Because there aren't that many new dollars chasing stocks and because there have been a fair number of new stocks created, we are always in the big tug of war. What's really anomalous about this particular battle is that it is senseless -- I will buy tech even if gasoline is high. However, because people somehow have decided that as gasoline goes up, you have to sell anything that's an expensive gadget, these two groups have been handcuffed to each other with only one winner.

Alas, I believe the equilibrium can't last. I believe that we are going to see tech in ascendancy and oil and natural gas slipping back, and I would sell oils into strength even as I would chase tech. ...