{"id":22399,"date":"2025-01-08T07:30:44","date_gmt":"2025-01-08T12:30:44","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=22399"},"modified":"2025-01-23T15:47:57","modified_gmt":"2025-01-23T15:47:57","slug":"get-ready-to-buy-big-oil","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/get-ready-to-buy-big-oil\/","title":{"rendered":"Get Ready to Buy Big Oil"},"content":{"rendered":"

Get ready to buy “big oil.”<\/p>\n

The energy sector lagged the broad stock market in 2024. The Energy Select Sector Fund (XLE) gained 6% versus the 23% return of the S&P 500. So, most folks don’t have energy stocks on their radar for 2025.<\/p>\n

But the Bullish Percent Index for the energy sector (BPENER) is on the verge of generating a buy signal. And, if this signal plays out similarly to previous buy signals, then oil stocks could play a big game of “catch up.”<\/p>\n

Look at this chart…<\/p>\n

\"chart\"<\/p>\n

(Click here to expand image)<\/a><\/p>\n

As a reminder… a bullish percent index (BPI) measures the percentage of stocks in a sector that are trading with bullish technical patterns. It’s designed to measure overbought and oversold conditions.<\/p>\n

An index is overbought when it registers above 80 – meaning 80% of the stocks in the sector are trading with bullish patterns. An index is oversold when it drops below 30.<\/p>\n

Buy signals occur when the BPENER turns higher from oversold conditions. That hasn’t happened yet. But, the BPENER is in oversold territory.<\/p>\n

Waiting on a Buy Signal<\/h2>\n

So, it could generate a buy signal any day now.<\/p>\n

In all of 2024, we only got one buy signal from the BPENER. That was back in early August.<\/p>\n

Here’s how the energy sector performed following that signal…<\/p>\n

\"chart\"<\/p>\n

(Click here to expand image)<\/a><\/p>\n

XLE gained 5% almost immediately. It then dipped to a lower low in September before launching a more significant rally that generated a 15% gain less than three months later.<\/p>\n

XLE is currently trading at about the same price it was back in August. The sector is just about as oversold as it was back then as well.<\/p>\n

And, the BPENER is on the verge of generating a buy signal.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

This looks like a bullish setup to me. And, with the incoming Trump administration chanting the mantra of “Drill baby drill,” 2025 could prove to be a good year for the oil stocks.<\/p>\n

Best regards and good trading,<\/p>\n

\"Signature\"<\/p>\n

Jeff Clark
\nEditor, Market Minute<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

2025 could prove to be a good year for the oil stocks.<\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-22399","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=22399"}],"version-history":[{"count":1,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22399\/revisions"}],"predecessor-version":[{"id":22992,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22399\/revisions\/22992"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=22399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=22399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=22399"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=22399"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=22399"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=22399"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=22399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}