Energy Stocks Stumbling

The S&P 500 is trading about 1% above its 50-day moving average, and 60% of the stocks in the index are trading above their 50-days.  But the S&P 500 Energy sector is a different story.  As shown in the second chart below, just 10% of S&P 500 Energy stocks are currently trading above their 50-days.  Energy stocks have come under pressure in recent weeks as oil has fallen from a high in the low $80s to its current price of $72.80/barrel.  Both oil and the Energy sector are now trading into oversold territory, but they are still holding their bull market uptrends.  Investors that have been waiting for a pullback to get into the sector definitely have an opportunity now.

Below we provide a table of the 40 stocks that make up the S&P 500 Energy sector.  The stocks are sorted by how far they're trading from their 50-day moving averages.  As shown, Range Resources (RRC) is trading the furthest below its 50-day at -14.41%.  Other names trading more than 10% below their 50-days include Chesapeake Energy (CHK), Tesoro (TSO), Baker Hughes (BHI), Smith International (SII), ENSCO (ESV), Murphy Oil (MUR), and Valero (VLO).

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Comments

[Financial Asset Management by]

While trading near the "oversold" border, there are gains to be made with stop-sale orders carefully placed on some of the positions mentioned.