Expect Resiliency in Energy
This article originally appeared earlier today on ETF Profits.
The decline in basic materials and commodity names, due to slowing growth in China, has created enough weakness in the energy sector to generate an intermediate-term oversold signal in the group. The energy sector is the weakest group internally in the market for this time frame, despite the strength in crude oil prices. This is an unusual divergence, which we don't expect to persist. The oversold signal in the group could mark an important inflection point for the sector, and we expect to see some resiliency develop in these names relatively soon. Because the recent news has been largely anticipated, perhaps it is already priced into the stocks at this point....475 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.