Develop Those Pieces

The rotation into the energy complex the last two sessions complements the recent strength we have profiled here and for Members in the sector. Indeed, the persistent crude oil strength accompanied by many individual energy stocks has surely been a mitigating factor in evaluating the bear case in this week leading up to the Fourth of July holiday. 

While it may be catchy to say we should swap out of "FANG" large cap tech names on our watchlists in favor of an energy play like Diamondback Energy (ticker symbol FANG), in reality both groups are faring well this morning albeit with energy the clear standout sector. And with bulls "developing their pieces" nicely here, a chess term which would apply to the markets insofar as bulls truly expounding on the various sectors out there beyond tech. 

On the FANG daily timeframe, below, we can see the stock is doing what most energy plays are doing this morning: Coming out of the gates quickly and making a forceful case for a more sustainable rotation higher this summer. 

Beyond energy, we also want to circle back to other sectors which typically benefit when energy thrives, which I will discuss a bit more at length inside the service.