Producer Delay?
Thursday was another day for the defensive names to shine, but for energy, it was somewhat of a stumble as utilities, real estate, healthcare, and staples rounded out the top 4 of the major 11 S&P sectors. Overall however if we shed that myopic view energy is the best performing sector in a one-week, one and three-month time period. That is a broad statement as the diverse energy space has some subgroups working better than others. Coal for one with leaders like CEIX and AMR is a beast. The equipment plays via the OIH are healthy too with a YTD advance of 16% and is just above a bull flag pivot of 340. The XLE has risen just 4% and the XOP is higher by just 11% thus far in 2023, and the chart below of the XOP shows it meandering following its own bull flag breakout. That is not the best of signs as we know the best breakouts tend to work right away. The presence of some dubious candlesticks too does not instill a great sense of confidence. We last looked at the ETF in our 7/24 Energy Note as it was showing some bullish signals. Is it showing just the opposite here?