At the end of May, we highlighted in this newsletter and in an article by Zac Mannes Stock Waves' success in tracking the energy sector over the last two years.
At that time, Zac and co-host Garrett Patten began warning about a pending top in energy stocks, and in the last two months the sector has continued to closely follow their counts.
Many energy names filled out an "A" wave inside the larger (4)th wave consolidation into early July and were due for a corrective bounce to resistance. Many of these went on to complete an abc up for the "B" wave into the end of July just as they all started to report earnings.
Despite blowout numbers for many of the energy stocks, they still leaked lower, with some like PDCE dropping even harder, in line with Zac and Garrett's ER calls for "Down" on and after the earnings reports.
Overheard this week in Stock Waves: "LOL anything non-energy which beats on earnings gets a positive pop AH...It's a good thing SW exists because otherwise I'd be pulling out my hair on the oil majors wondering how in hell you can beat by half a billion dollars and watch your stock sink 10% in 2 days....Seriously this movement in energy names is the best marketing for SW I ever saw... would not be fun to be flying blind in the sector right now." --TM56E-478