EarningsBeats.com Digest

Published: Mon, 06/29/20

EarningsBeats.com Digest for June 29, 2020

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There Do Remain Bright Spots in Energy

Last week was unkind to energy shares (XLE) as this ETF fell 6.55%, the worst percentage loss among the 11 sectors. The XLE is also the worst performing sector over the past month and past six months. But not every stock in the energy sector is bearish. In fact, there are many that still cling to bullish chart patterns. One such stock is Antero Midstream (AM), which continues to trade in an uptrend and above both price support and its 50 day SMA. Its PPO is in positive territory as well:

While the chart still contains bullish characteristics, there's no doubt that I'd make fewer excuses for a stock that breaks down within a bearish sector. I typically have more patience with leading stocks in leading sectors. I've marked two green arrows at key price support and relative price support. If both of these levels are violated, I'd look to other areas of the market and other stocks. This is simply to point out a relatively strong stock in energy, but let me be clear about something. I don't own any energy names, and I wouldn't own this one. Why? Well, I feel it's easier to beat the S&P 500 by investing in sectors that are beating the S&P 500. Energy isn't one of them.

Happy trading!

Tom Bowley

Chief Market Strategist

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