Welcome back for another Top Down Trade of the Week.
This one’s a classic leadership scan.
We start with the best sectors, then drill into the subgroups. We pick one, and then take a look at the top stocks in it.
This week, Energy is the big standout—jumping to the top of our sector rankings.
Healthcare and utilities also made a big move up on the leaderboard as growth sectors faltered.
Here is a look at our overall industry rankings, which shows oil & gas cracking into the top 10.
It’s not a surprise to see it there—crude oil has been squeezing higher, posting its best week since October 2022.
That kind of price action tends to light a fire under energy stocks, and that’s exactly what we’re seeing.
These are the Top 10 integrated oil & gas names, sorted by relative strength.
My favorite setup from the list is Imperial Oil Ltd $IMO:
Imperial Oil might just be the best-looking energy chart out there right now.
The stock is making new all-time highs on both an absolute and relative basis.
How many energy names can say that these days? Not many.
After spending a year consolidating above the breakout level of a 15-year base, IMO is breaking out to fresh highs again.
As long as we’re above 80, we like it long with a target of 140.
Our team at ASC is constantly running these kinds of top-down scans. If you want access to our research and the trade ideas that come out of it, join us today—risk free.
