Week 14 Energy Sector Trending and Performance

I am finding it more useful to carve out specific sectors for consolidated analysis. So, I have created my own Energy tracker that includes legacy energy and also some clean energy. And for some better perspective, I have also included some large name individual stocks (although I do not trade them).

Trending Heat Map

With the price of oil jumping, the heat map does indicate that all legacy energy ETFs and large company stocks are starting to trend well. The XLE is already perfectly bullish along-with its 2 biggest components: CVX and XOM. The XOP could be following. (I am long both XLE and XOP as of now).

In clean energy ICLN seems to be doing fine whereas Solar TAN is not.

Performance

What jumps out at me from the above table is the consistent returns by Exxon Mobil XOM. It stands out from everyone else and has performed better than the S&P 500 looked at from any period of observation. I did not know about this clear outperformance by XOM until now.

Other than XOM there is nothing much to say. I guess it makes sense to look at the recent weekly performance as we have seen the trending change of late due to the jump in the oil prices.

Week-over-Week Performance

Not much to say about the above table. The oil price jump happened over the weekend due to the OPEC announcement and the prices may have gapped up in the morning at open of trading day which my returns will miss. I calculate returns from start of day to close of day.

The XLE went from 77.59 at close of 3/23 to 86.58 at close on 4/3. that is +11.58% in 7 trading days. The OPEC+ announcement was on 4/2 Sunday. The XLE was already up +6.75% by 3/31 which was the Friday before the weekend announcement. It went up another +4.52% on Monday.

So, what I am saying is that XLE was already moving up before the OPEC+ announcement as if the markets knew what was going to happen that weekend. I am not at all suggesting there was anything fishy going on. Merely marveling at the wisdom of the markets and why we should follow it and never try to beat it.