Chart of the Day: IEO
The market finished lower today, but given the big rise in oil again and the selling pressure in the financials, I suppose it could have been worse.
My Chart of the Day is the oil & gas ETF (IEO). This etf has been performing very nicely of late, as the natural gas stocks have been in a solid uptrend.
The price of natural gas continues to appear too low relative to the price of crude oil. That should keep upward pressure on nat gas prices, and help support the shares of the stocks in this sector.
Looking at the chart above, you can see that the fund has been in a long uptrend, and since hitting its January lows, it has began making a series of higher lows and higher highs.
Today, the fund made a new closing high. Looking at ETFs exhibiting high relative strength in this environment, IEO is near the top of the list. Energy stocks continue to be leaders in this choppy market, and as long as that continues, IEO will continue to perform nicely.