The Rising Tide Is Lifting All Boats

When we think about stock market performance in 2022, not too many of us are probably thinking about that old Wall Street adage, "a rising tide lifts all boats".

Quite frankly, outside of the past week, there's not too much rising these days - unless we're talking about the energy sector. Energy (XLE) has been the one bright light, rising 59% year-to-date. Utilities (XLU, +4.53%) is the only other sector in positive territory. Within energy, it's difficult to find a poorly-performing stock as that old adage rings true. Range Resources (RRC) is one that's struggled on a relative basis, but did just make a breakout:

After making that breakout, however, RRC saw a reversing candle on Tuesday. Will that mark a top? In just about every other sector, I'd say very likely. But in energy? Well, let's just watch and see. If RRC does sell off near-term, I'd watch the combination of the 20-day EMA and 50-day SMA for support (green arrow). Crude oil prices ($WTIC) jumped on Tuesday, but finished quite poorly in the afternoon. Therefore, I do believe it's more likely than not that RRC sees more selling in the short-term. That could set up a nice trade off those moving averages.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.