Scott still thinks Energy is where you wanna be in this market. $XLE $XOP – May 4, 2022XLE SPY XOM VLO DVN DXY
This is Scott with your Chart of the Day. I want to take a look at XLE ( NYSEARCA: XLE ) and some energy stocks because I think energy is still pretty much where you want to be in this market.
Now, as you know, we did have a big day on the SPY ( NYSEARCA: SPY ). A J-Pal Pump back up to the 21-day exponential period moving average here on SPY ( NYSEARCA: SPY ). But we are still in a pretty strong downtrend because we are under the 50- day and under the 200-day. So the longer-term moving averages are still drifting sideways, they’re lower.
And meanwhile, XLE ( NYSEARCA: XLE ) is near its highs and the longer-term moving averages are sloping to the upside. And so I like to pay attention to things that are near their highs when the market is kind of in flux like it is right now like it has been for a while As you can see XLE ( NYSEARCA: XLE ) has been in a nice strong uptrend all year long.
And so that brings me to stocks like XOM ( NYSE: XOM ), which is also in a nice uptrend and near the highs. Dan Fitzpatrick at stockmarketmentor.com added XOM ( NYSE: XOM ) to our Active Trade List yesterday. I actually took a little bit of this stock here on this day, added some yesterday, and added more today. This is currently my biggest position right now because it is in a strong uptrend and near the highs. If I bring in a weekly chart you can see, again, a long-term weekly uptrend
How about VLO ( NYSE: VLO )? Now, this is one that we have talked about in previous Chart of the Day videos, this is also near the highs. Now, I don’t think you can buy this right here right now, I think it is quite extended. You probably want to look for a little pullback to the moving averages here.
If I look at DVN ( NYSE: DVN ), also near the highs. Really good volume here the last two days. Occidental Petroleum ( NYSE: OXY ), near the highs. In fact, I think you could probably put an alert on OXY ( NYSE: OXY ) right around 63.60 and look for a strong move above this space coming on higher than average volume. Now, I will point out that they do have earnings coming up next week so that could be a catalyst for higher prices.