Sentiment in the market has a way of changing on a dime.  A case in point is the Energy sector.  In addition to hitting a 52-week high on Thursday, a number of internal measures for the sector have been pointing higher.  For starters, check out the sector’s relative strength versus the S&P 500.  In the span of two months, the sector went from underperforming the S&P 500 by its widest margin in over a year to outperforming by its widest margin in a year.

Breadth in the sector has also been strong.  As highlighted in our Sector Snapshots report on Thursday, 97% of the stocks in the sector are currently above their 50-day moving averages.  That compares to a level of 57% for the entire S&P 500 and 76% for the next closest sector (Technology).  Not only are nearly all of the stocks in the sector above their 50-DMAs, but a good chunk of them are also hitting 52-week highs.  In yesterday’s session alone, over 40% of the stocks in the sector hit 52-week highs.  That was the highest one-day percentage for the sector since late 2016.  Suddenly, investors can’t get their hands on enough energy stocks.  Crude oil at over $70 a barrel as a way of doing that!

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