Relentless Energy:
The second half of 2021 began Thursday, and the more things change the more they stay the same. Energy has been in the lead for the 11 major S&P sectors all throughout the year and is likely to go wire to wire until the end of December. The XLE has advanced nearly 50% so far, and its next closest competitor in the financials has gained more than 26%. We will focus here not on the waterlogged XLE, but the XOP which is at a critical juncture here at the very round par number. The ETF on 6/9 touched 100.01 recording a bearish dark cloud cover candle that sent the fund down a quick 10 handles. Last Friday it traded fractionally above 100 intraday yet again, only to see the next session drop 4.4%. The fact that it is not going away here is a good sign. Thursday it was above 100 once again intraday but CLOSED one handle below it. My gut feel is if tomorrow can achieve a finish above par it could be off to the races for the group.