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Last week in our energy note we drew up a ratio chart of the XOP against the OIH, and we pondered if it was a double top for the exploration names against the equipment. If this week was any indication, that double top will be long lasting and equipment should outperform. This is not a knock on the XOP. This is just an under-owned overall energy space, and both are on fire. Remember ratio charts compare one instrument to another and gives an assessment of which should be overweighted against the other. It does not mean one is weak, in fact, both are very deserving of your capital. This past week the OIH screamed higher by 19%, its best WEEKLY gain since the week ending 6/5/20 (the next 3 weeks gave that entire move back). The XOP was no slouch either jumping 8%. The good old days of SLB HAL and NOV are back. The latter name has jumped 40% since 4/21. Any pullback in these names should be taken advantage of.

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