The energy stocks have been lagging the market all year (until very recently)...and they are now poised to breakout in a powerful way if the energy stock ETF (the XLE & XOP) can break above the key resistance levels that are just above where they are trading right now.
If they can indeed breakout, the "calendar" could/should turn the situation where "forced buying" gives the energy stocks a powerful boost into year-end. No, we're not just talking about short covering. A breakout here will create a major incentive for all institutional investors (who are very under-owned in the sector) to flock towards the group in a significant fashion.
To see the key resistance levels we're talking about...and to hear why it should create substantial buying in the sector as we move through the rest of the year, please click here to subscribe to my market newsletter, "The Maley Report" (TheMaleyReport.com).
Matthew J. Maley
Chief Market Strategist
Miller Tabak + Co., LLC
Founder, The Maley Report
275 Grove St. Suite 2-400
Newton, MA 02466
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