{"id":9258,"date":"2018-04-11T07:30:37","date_gmt":"2018-04-11T11:30:37","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=9258"},"modified":"2018-04-11T07:30:37","modified_gmt":"2018-04-11T11:30:37","slug":"the-best-sector-to-ride-the-market-higher","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-best-sector-to-ride-the-market-higher\/","title":{"rendered":"The Best Sector to Ride the Market Higher"},"content":{"rendered":"

Energy stocks led the market higher yesterday.<\/p>\n

The S&P 500 gained 1.7% on Tuesday. Meanwhile, the Energy Select Sector SPDR Fund (XLE) – an exchange-traded fund composed of energy stocks – gained 3.5%. That’s over twice the return of the major indexes. And it trounced the performance of the banking sector – which seems to be just about everybody else’s favorite group right now.<\/p>\n

Most important, though, is that yesterday’s energy stock rally looks like just the start of an intermediate-term move higher.<\/p>\n

Take a look at this chart of XLE…<\/p>\n

\"\"<\/p>\n

After the sharp decline in early February, XLE spent several weeks chopping back and forth in a tight trading range. That action allowed the 50-day moving average (MA)<\/a> enough time to decline closer to the stock’s price.<\/p>\n

That set up the potential for XLE to rally and break out above the 50-day MA. That, of course, is what happened yesterday.<\/p>\n

Notice also that the 9-day exponential moving average (EMA)<\/a> is on the verge of crossing above the 50-day MA. This “bullish cross” often marks the start of an intermediate-term move higher.<\/p>\n

And it’s this exact setup that convinces me that energy stocks will lead the market higher for the next several weeks.<\/p>\n

You see, most other sector charts don’t look anything like XLE. Most sector charts still have some work to do before they look bullish.<\/p>\n

For example, here’s the chart of the Financial Select Sector SPDR Fund (XLF)…<\/p>\n

\"\"<\/p>\n

The 50-day MA is still too far above the current price of XLF to set the stage for a breakout move. And, the 9-day EMA is too far away from forming a bullish cross.<\/p>\n

Granted, if the market does indeed rally from here for the next several weeks – as I expect it to do – banks and most of the other sectors will do just fine. But energy stocks are likely to be the top performers.<\/p>\n

Traders should take advantage of any weakness in the energy sector over the next few days as a chance to buy.<\/p>\n

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

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Today, a couple notes from Delta Report<\/em> subscribers\u2026<\/p>\n

\n

Jeff, I have only been a member for three weeks. Based on your ideas, I bought XOM calls and sold DHR puts. These two trades have covered the cost of your service for the next decade. Thanks. <\/p>\n

– Peter<\/strong><\/p>\n<\/blockquote>\n

<\/p>\n

\n

I have been wanting to learn. Learn how, what, when, why, where about trading. You are a real blessing for me. Please don’t think you are wasting your time, your knowledge, and your passion for trading in helping those of us who want to learn.<\/p>\n

I read in a stock magazine that trading is not a casino. I don’t know who said that or how you feel about that but I think whoever said that is nuts.<\/p>\n

Thank you for showing us what to look for, what it means, and what to look for next. Thank you, Mr. Clark.<\/p>\n

– Ann<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful letters and insights. Keep them coming right here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The energy sector is leading the market higher… here’s the way to play it. <\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"closed","ping_status":"open","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-9258","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\/9258","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\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=9258"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/9258\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=9258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=9258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=9258"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=9258"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=9258"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=9258"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=9258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}