Be Wary of Energies ($XLE)

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

Be wary of Energy names when researching your stocks. When you reference the Tradespoon Bears Conviction List, three out of the five most bearish names are in the energy sector: $CLD, $ANR, $RIG.

Utilities ($XLU) are the hottest sector on the board. Looking at the Tradespoon Bulls today, Duke Energy ($DUK) is the highest rated stock in that space. The rotational momentum of this sector has been impressive. This can only be confirmed if we see the S&Ps ($SPY) break with upside resistence, roughly $206.65 on the big-cap index ($SPY).

Last, ’tis the season and Black Friday is upon us. So this is a good time to take a look at one last sector, Consumer Staples ($XLP), which has had upside momentum. If you look at the Tradespoon Bulls we have the highest rated stocks in the retail category as $FL, $PETM and $TSCO.

As we get into later today and tomorrow, volume could drop off and volatility could pick up. Make sure you stay on your toes. As always, use limit prices when your are placing orders.

See you next time at the Corner!