After the S&P 500 got extremely close to its 100-day SMA last Thursday, the bulls have been back in the driver’s seat. With the index up +1.8% in afternoon trade, all 11 sectors are following suit, with Energy being the strongest performer out of the bunch.
With crude up and natural gas down on the day, it’s difficult to decipher why this sector is performing so well, currently trading up +3.4% from Friday’s close. One thing that could be contributing to this outperformance is the simple fact that the sector has been getting absolutely punished since June of this year, but that’s just a theory. Diving deeper into the sector, I always like to see what’s over/under performing using the industry average as the benchmark.
CGX Energy Inc. (OTC-PNK:CGXEF) has found tremendous success on the day as it’s trading up to $.33/share (+8.2%) on no news. My thinking is that traders liked the level based on the overall uptrend the stock has been riding since the 52-week low made back in March of this year paired with the prior month’s support that was found at the 100-day SMA. Today’s jump puts the price back above this metric as well as flirting with crossing over the 10-day SMA if it can just get a little more steam.
On the other end of the spectrum lies QS Energy Inc. (OTC-PNK:QSEP) trading down to $.0265/share for a -11.67% move DoD. This appears to be a fully technical move as well after the shares touched the 50-day SMA that has been acting as resistance for the past few months.
