I’ve been telling anyone and everyone who would listen that I was bearish on the Energy sector. That’s because it’s been one of the weakest industries since COVID-19 took the world by storm in 2020.
But then I took a good look at my CSI scan and the top stocks on it…
I’m seeing names like Devon Energy, Marathon Oil and Diamondback in the top 10 out of 500 stocks. And when I looked at the cumulative strength index, guess what I saw… Energy is leading!
So it’s safe to say I’m bullish on oil stocks — for the first time in two years!
Why I’m Bullish on Oil Stocks for the First Time in 2 Years
The thing about me is that I do a great job listening to my indicators. And right now, Energy is up 40% on a cumulative basis versus the next one up, which is Financials — up 30%.
So I decided to look at the three top stocks, and the biggest thing I wanted to see was if they are trading above February 2020’s price highs on a technical basis. And all of sudden… they are.
That’s why it’s easy to understand why I’m now bullish on oil stocks.
But I’m also bullish on oil stocks because the supply and demand factors are starting to shift. I’m not saying there isn’t a huge supply of energy and crude oil. In fact, I think it’ll be there for quite some time.
The stock market shifts based on sentiment — not actual supply and demand.
So as soon as that shift begins to happen, the market starts reacting to it. And remember, the market is extremely efficient — especially the Energy sector.
Check out the video below to learn more about why I’m bullish on oil stocks for the first time in two years. And be sure to share your thoughts in the comments section at the bottom of this page.
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