Follow The Leader:
The energy sector has been the clear leader over many different time frames. Last week displayed clout as the XLE jumped more than 10% leaving the second-best major S&P sector in the utilities in the dust with the XLU gaining a scant 1.3%. The ETF rose 4 of 5 sessions last week with all four gainers CLOSING at the very top of the daily range, pure bull market traits. The XLE on all other look-back periods is dominating as well. Over the last one month period, it is the only one of 11 major S&P groups to be green, higher by 8.5%. It also holds very commanding leads on a 3 and 6-month time frame, YTD, and over the last year. This will not last forever but one needs to stay with trends. Now the XLE is a very top-heavy ETF with the second-largest holding in CVX representing more than 20%. Below is its chart and although it is lagging XOM which is right at all-time highs, both charts are appealing, and each offers dividend yields better than 3%.