Energy was the number one sector on Monday, as oil topped the $70 level for the first time in nearly six weeks. U.S. crude oil futures for October delivery settled at $70.45 a barrel, up more than 1.0 percent, while bullish price action centered around oil and gas stocks. The Energy Select Sector SPDR Fund (XLE) was the top performing S&P sector, up more than 3 percent in the morning session.
Some of the more compelling growth stories in the sector come from oil and gas producers like Devon Energy (DVN). The stock closed off highs Monday, but shares still rallied 3% as they form a cup-with-handle base with a 30.65 buy point. Also in the group, Magnolia Oil & Gas (MGY) has a relative strength line near highs as the stock trades near a 16.48 entry.
Watchlist Candidate – DECK
Price action rose above the 9/21/50d moving averages on Monday. Stochastic, RSI and MACD have turned bullish. That said, we’re looking for followthrough this week.
WASHINGTON, Sept 10 (Reuters) – U.S. Democratic lawmakers on Friday proposed an expansion of tax credits for electric vehicles that includes significantly higher subsidies for union-made zero emission models assembled in the United States.
General Motors (GM) is rising on the proposed subsidies, with oscillators turning higher. Stochastic, MACD and RSI are bullish. Volume has been above average for the past two trading sessions, suggesting institutions were active.
We bought General Motors (GM) October calls and shares on the news as price action appears to be ready to start a new uptrend. Stops are trailing and reset to the average true range each day.
Futures are higher this morning, as CPI data printed an increase of 3% vs. an estimated 4%.