Energy Stocks Plummet
This morning, the weak sector in the stock market is the energy sector. The leading integrated energy stocks such as Exxon Mobil Corp.(NYSE:XOM), Chevron Corp.(NYSE:CVX), and ConocoPhillips(NYSE:COP), are all trading lower by more than 1.50 percent. When the big three decline it is prudent to expect the rest of the major energy stocks to decline or trade lower.
Most of the leading coal stocks are trading lower as well. Stocks such as Peabody Energy Corp.(NYSE:BTU), James River Coal Co.(NASDAQ:JRCC), and Alpha Natural Resources(NYSE:ANR), are also under selling pressure. When different industry groups in the energy sector are trading lower this tells us that the entire energy complex is under distribution or institutional selling.
The stronger U.S. Dollar Index is obviously the catalyst for the energy decline. Short term scalp traders can look for a bounce in many of the energy stocks when the U.S. Dollar Index(DXY) pulls back. At this time the DXY is very strong trading higher by 0.36 cents to $74.98. As long as the DXY trades higher most energy stock could decline further.