Crude surging back to new closing highs (at current levels) for 2016 following the news regarding a possible Russian/ Saudi Output freeze ahead of this weekend's Doha meeting- Trends remain bullish, and is one reason why many of the other reasons for Equities pulling back really haven't worked- Given today's move, a rise up to the mid-40s is definitely possible ahead of this coming weekends meeting, and Energy should be considered a source of ongoing strength in the near-term
Of the 20 BEST performing names of the SPX today, 17 are energy names with all the top 20 being higher by 3.8% or higher, with names like MRO, MUR, RRC, APA, HES, PXD, CXO, SWN all pushing up to new monthly highs.
XOI lifting to the highest levels since mid-March, but a very bullish technical formation that should allow for new 2016 highs being right around the corner
Exploration and Production stocks have been a particular rich source of outperformance, with names like REXX, SDRL, BBEP, TAT, WTI, ORIG, WLL, AREX, UNT, VNR, ERF, NOG, KEG, BBG, ESV all up MORE than 10% with REX, SDRL and BBEP up more than 20%.
Overall, this move in energy does not look likely to reverse course ahead of this weekend and Energy should be considered a good source of risk/reward names for longs with a short-term perspective, based on recent technical outperformance
This week's Weekly Technical Perspective discusses the Gold stocks and what's in store, and can be found at http://newtonadvisor.com