The FusionIQ Oil and Gas Index has scored a new high. It clearly remains an area of leadership in the market. While there has been a rush to plough into the depressed banking sector names with many investors figuring the worst is over no one wants to be in the Oil and Gas names. Just as buying the banks on positive sentiment is flawed, since real bottoms occur on excessive negative sentiment avoiding the Oil and Gas Index because sentiment is negative also makes no sense either as tops are formed on over confidence not comments like " those names are extended"
So though logic would say to avoid the extended names and buy the beaten down names in reality we know the opposite almost always works (ie the strong get stronger and the weak get weaker)
Below we list the FusionIQ Oil and Gas Index components and their respective FusionIQ Master scores. As seen all the scores are still bullish.