Energy Sector Rocks
Gary S. Morrow | Dec 10, 2020 12:23PM ET
Bid day for the energy sector. A total of 14 of the top 15 gainers in the S&P 500 Index are energy names. Starbucks (NASDAQ:SBUX), with a 4.5% gain, is the only none energy name in the top 15. Our preferred ETF, as far as energy sector exposure, is (NYSE:XLE). This index has been moving extremely well since the late October lows. The powerful ‘vaccine’ inspired breakout drove the XLE through the top band of a bear channel that had been in place since the summer highs. From the October close, XLE has put in six straight higher weekly lows while gaining 45%. From the March lows, the index is currently up 82% after dropping more than 70% from the 2018 highs ($79.40). We believe there is more in the tank. Next target is a retest of the summer highs ($47).
Top 10 XLE holdings: Chevron Corp (NYSE:CVX) +23.28%, Exxon Mobil Corp (NYSE:XOM) +20.78%, ConocoPhillips (NYSE:COP) +4.70%, Schlumberger (NYSE:SLB) +4.51%, Kinder Morgan Inc (NYSE:KMI) +4.37%, EOG Resources Inc (NYSE:EOG) +4.26%, Phillips 66 (NYSE:PSX) +4.13%, Williams Companies Inc (NYSE:WMB) +3.98%, Marathon Petroleum Corp (NYSE:MPC) +3.95% and Valero Energy Corporation (NYSE:VLO) +3.42%.
Note: We are long CVX, XOM, COP, SLB, PSX and XLE in some managed accounts.
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