Energy Sector Getting Top Heavy Here


There is no doubt that the tape is feeling heavier since last week's sell-off.    One of the sectors that is feeling particularly heavy is the energy sector.  I always feel that partticularly for ETFs that nowadays get thrown around as if they are an individual stock, it is particularly important to be aware of at least the top 5 or 10 holdings.  Here are the top holdings for the XLE energy sector etf.

The top 10 holdings of the XLE

  1. ExxonMobil Corporation (XOM): 16.78%

  2. Chevron Corporation (CVX): 13.13%

  3. Schlumberger, Ltd. (SLB): 7.90%

  4. ConocoPhillips (COP): 5.03%

  5. Occidental Petroleum Corporation (OXY): 4.42%

  6. Apache Corporation (APA): 3.44%

  7. Halliburton Company (HAL): 3.25%

  8. Anadarko Petroleum Corp. (APC): 2.82%

  9. Devon Energy Corporation (DVN): 2.70%

  10. Marathon Oil Corporation (MRO): 2.65%

The Chart?  

Well, for starters there is a fairly obvious head and shoulders pattern in place that has a target of around $65 if it plays out perfectly.  Second, notice the steadily declining RSI indicator below the volume on the chart.  There is also divergence between the S&P500 and thr XLE over the past couple of months..i.e the XLE did not make new 2011 highs two weeks ago.

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