Curb Your Enthusiasm?
When one peers at the YTD action among the major S&P sectors, they would have to come away impressed. The “worst” performing actor is energy, although the XLE is UP nearly 12% thus far in 2019. The term rolling bull market is thrown around a lot, as many sectors have been responsible for keeping the major averages afloat at such high altitudes throughout the year. Technology has not really taken a breather, but healthcare and financials stepped up at various instances, and now it seems like its energies turn. Over the last one week period it is the BEST major S&P sector, and the last one month it is the third strongest. Of the four aforementioned groups, energy would be the softest, as the XLE still trades 10% off most recent 52 week highs. The ETF is on pace to be the worst performing major S&P sector FOUR of the last 6 years, not a typo. For that reason one could make the argument that this is merely a prolonged dead cat bounce. Let PRICE confirm on the ratio chart against the S&P before one becomes ebullient.