Energy earnings season kicks into high gear during the last week of this month. On April 30, Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX) and ConocoPhillips (NYSE: COP), a combined 34% of XLE’s weight, report first-quarter results. [Energy Dividends in Focus]
“Now the ratio and momentum could be breaking support. If this is a new trend by the ratio, being long XLE and Short the S&P could pay off, just as the opposite trade has paid off for the past nine months,” adds Kimble.
S&P 500/XLE Ratio
Chart Courtesy: Kimble Charting Solutions
