Separating from the Herd

There has been much ballyhoo surrounding the various tech IPOs in 2018. But we ought not forget about some energy IPOs like Nine Energy Services, below on the daily chart. 

When you consider the sector rotations taking place today, the energy IPO basket becomes all the more attractive as the OIH and XOP sector ETFs are both outperforming on a relative and absolute basis. 

Turning to NINE, this is an oilfield service provider, specially a provider of well completion and production services. Although it trades with thinner volume, if NINE can push over $34 it is hard not to look at this chart as an actionable long idea in a sector which has been progressively heating up. 

Elsewhere, it has been a puzzling session on some level, given the glaring weakness in select tech and biotech even a the Dow has shot up higher with very little in the way of intraday fading. It will be interesting to see if today is just a one-off event in that regard, or if there is some more unwinding to come in various tech. 

Either way, the rotations into energy, materials, and banks seem to be at the forefront of today's session and at the heart of the rally.