Energy sector after oil's 1st 4 s.d. rise in > 6 months during a down market

We’ve looked at “shock days” like this many times across different assets, as it can be the kind of move that triggers a sentiment change among investors. We typically use a market’s one-day percentage change relative to other one-day changes during the past year, adjusted for the standard deviation of those moves, to determine if a move is enough to potentially shock investors.

Monday’s move in oil certainly qualifies, at more than 5 standard deviations outside the norm. this kind of move has been good to energy stocks going forward. See the September 16 report for more.