Oil stocks continue to show a clear disconnect from the commodities they track, with oil stocks staging a powerful rally despite oil prices falling since the OPEC meeting. Over the past 30 days, the energy sector’s leading benchmark, the Energy Select Sector SPDR Fund (NYSEARCA:XLE) is up 24.6%, while average spot crude prices are down 8% over the period. XLE now has a 52.9% year-to-date return compared to a 20.0% decline through the S&P500.
There is a method…
