Weekly Update: Big Energy Breakouts on the Horizon?
We finally got a positive week for stocks, but it wasn’t enough to get me excited.
As you can see in the image below, the S&P 500 is having a hard time even getting above its 21-day moving average.
And there are still the declining 50-day and 200-day moving averages to contend with.
As of Friday morning, only 25% of stocks traded above their respective 50- and 200-day moving averages…
What that means is that the market is still incredibly weak.
Pockets of Strength
However, as with any bear market, there is usually at least one pocket of strength to be found.
Earlier this year, that was the energy space.
Dozens of oil and gas stocks made huge moves higher despite the indexes trading lower.
After a good-sized correction in June, the energy sector is again showing signs of life.
As you can see in the chart of the Energy Select Sector SPDR Fund (XLE) above, the sector is breaking out from a four-month consolidation base.
Several energy names in the group are emerging from similar patterns.
It’s still too early to say whether the market has indeed bottomed or if there is further to fall.
But if you’re looking for stocks to buy, the energy group looks the best to me right now.
Stealth Trades Watchlist
Click here to view this week’s full Watchlist!
But remember that not all of the stocks on our Watchlist are actionable…
When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!
Join the Insiders
Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…
Do yourself a favor and check out my latest Insider Effect presentation!
Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.
I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.
Live Coaching Session
I hope you’ll join me on Monday, Oct. 24, for our next live Stealth Trades session at 3:00 p.m. ET…
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription!
In the meantime, you can watch the replay of our latest Stealth Trades session right here.
Best wishes for your trading,
Ross Givens
Editor, Stealth Trades
P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.