Size Matters:

Looking below at the chart of the XLE, XOP, and PSCE one can see the nascent move in the latter which represents the small-cap energy plays. Could this be a sign of “risk on” in the group and smaller names tend to be a good leading indicator overall? The red line highlights the PSCE and one can see it was above its January and February highs last Friday, while the XOP and XLE are not. Taking a look at the last 3-month period the PSCE is handily outperforming up 5%, while the XLE is UNCH and the XOP lower by 2%. Some interesting plays in the smaller names are PUMP, an equipment name that is having issues with the very round 10 number for 2 months, and a declining 200-day SMA, which it has touched 4 times now since last November. A move above could ignite some buying. Another name in HPK looks intriguing as it has traded between the round 20-30 figures, and on its WEEKLY chart since a bullish morning star pattern completed the week ending 12/23/22 it has risen 9 of the last 11 weeks. It now has the look of a bull flag and a move above 30 should see a quick move to 40. On its daily chart, it sports a double bottom pivot of 29.19 for shorter-term traders.

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