About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Monday, June 21, 2010

Energy Sector Relative Strength

The energy sector has badly underperformed the SP 500 since the
popping of the oil price bubble in 2008. Relative performance of
the energy sector has outrun the deep down trend line from 2008,
but, as is interesting, it is threatening to break out of a tight down
trend line dating back 12 months. The recent bounce in the oil price
and the apparent basing of the natural gas price are helping as is
the passing of the peak in merger arbitrage of the Exxon / XLO
deal. The broad group is doing ok despite hits to BP and Anadarko,
so a breakout above trend may be of interest. Chart.

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