David Vs. Goliath:

In the consumer sector, investors will often look for broader participation to see just how well subgroups within specific sectors are behaving. The comparison would be the XLY to the XRT, with the latter often getting mentioned as “equal weight” as AMZN and TSLA make up more than 40% of the XLY as in the XRT the top holding CHWY represents 1.4%. Inside the energy arena, the similar measuring can be done by contrasting the XLE with the XOP. XOM and CVX make up 45% of the XLE whereas CLR and OXY make up less than 5% between them. Below is the ratio chart comparing the 2 and one can see how well the XOP is doing the last 6 weeks suggesting more stocks other than the big two are pulling their weight. Over the last one-month period the XOP has advanced 19% and the XLE by 13%. Of course, there is a dividend factor to consider, but in my opinion, this is a good sign overall for energy to be acting well, for the most part across the board.

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