Oil is a Bullish Sector in a Bearish Market

Tom Gentile

Posted in
Big Picture

By: Tom Gentile
May 6th, 2022

2 mins read

The Oil Sector is at Year-to-Date Highs

The market is in e bearish slide overall with the Dow down 9.96% Year-to-Date (YTD), the NASDAQ is down 22.45%, which could be qualified as a recession for that market, and the S&P 500 is down 13.91% all at the time of this write up.

The choice is to either to go with the trend and consider going short stocks that are sliding, execute bearish options strategies or find a sector that is defying the trend and trading higher. Better than just trading higher is a situation where a stock or sector of stocks is trading at or near their 52-week highs.

I’ve written about this before where this is a tactic made popular by the creator of Investor’s Business Daily where we advocated a strategy of buying stocks at their 52-week highs. He wrote stocks are at 52-week highs for a reason and found that strength begets more strength.

That sector is Oil.

Toms Tools can Search out Stocks at or Near their 52-Week High

My options analysis suite of tools; my online software located at www.tomsoptiontools.com can search up stocks at or near their 52-week highs.

For all those that subscribe to my tools, you are in possession of this quality suite of online scanning tools, the Hi/Low scanner as well.

Log in > Hover your mouse over the Stocks Tab > Hover your mouse over the Stock Analysis line item > Left-click Hi/Low and you get to this page…

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Make sure your number of weeks is 52.

You can select whichever list you want (S&P 500 Optionable is selected in the image shown).

Left click the Wizard (scan) Stocks with the Latest Highest Close for Weeks Chosen.

Left click Search.

Here is a list of the first 10 stocks on the list. They are ranked by highest percentage to lowest. 100% means it is at its 52-wk high and the numbers less that that are what percentage of the 52-wk high it is at.

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Notice that 7 of the first 10 are all oil and energy stocks.

You can go to the Morning Reports lists to see if any options on these are populating there or create a new list of all these oil stocks and run that list against any of the other options scans to find opportunities.

App: Toms Option Tools

Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.

Other times I will have other charts may work to amplify my educational points. 

Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.

Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.