Release the Kraken: Bulls Need Energy Stocks to Join the Rally

If I had written this 10 years ago, you would’ve ordered me a rubber room…the stock market needs stronger energy to power higher. 

Oil & Gas stocks are probably the only group that matters in terms of the equity rally’s ability to continue.  Energy is an 11.5% weighting in the S&P 500 these days, behind only Financials (14%) and Tech (%20).

The underperformance of energy stocks has gone from being ‘interesting’ to ‘glaring’ as everything from casual dining to specialty retail to biotech races higher.  Weak natural gas may be the culprit for this non-participation.  If this is the case, then last week’s rally off the lows for the woeful commodity may be meaningful for the entire market, not just for Chesapeake ($CHK) and Devon ($DVN)Goldman’s bullish call for gas stocks certainly didn’t hurt the cause, either.

The energy sector may very well hold the key to a leg higher.  Exxon Mobil ($XOM) is one of the most widely-held names in the world and is the biggest wheel in both the Dow and the S&P. 

So can this group join in?  Will energy stock traders finally “Release the Kracken“?

If not, can the rest of market continue to rally in the absence of some traction in the oil and gas patch?  To me, that’s the gutcheck question for the bulls here.

And here’s the old school Kraken for my fellow Eighties Babies.  Harry Hamlin was The Man

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. thenaturalpenguin commented on Sep 24

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  2. blazingtraderapp.com commented on Sep 26

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  3. immediate edge crypto commented on Sep 28

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  4. bitcoin loophole review commented on Sep 29

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  5. 안전놀이터 commented on Oct 06

    … [Trackback]

    […] There you can find 96443 more Information on that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  6. 토토 commented on Oct 16

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  7. best love doll commented on Oct 23

    … [Trackback]

    […] There you can find 91133 more Information to that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  8. wallet casino malaysia commented on Nov 20

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  9. Matthew Erausquin commented on Nov 25

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  10. buy proviron commented on Jan 18

    … [Trackback]

    […] Here you will find 56197 additional Information to that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]

  11. buffstreams commented on Jan 26

    … [Trackback]

    […] There you can find 51476 more Information on that Topic: thereformedbroker.com/2010/04/05/release-the-kraken-bulls-need-energy-stocks-to-join-the-rally/ […]