Exxon at All-Time Highs

$XOM

XOM 0.00%↑ will open this week at an all-time high on an absolute basis. It’s almost 4x’d from an October 2020 low. The simple analysis - long positioning above the horizontal line (I’m writing put spreads, personally).

While the absolute move has been tremendous, we can see that XOM 0.00%↑ relative to a broad market index like SPY 0.00%↑ is retracing back towards historical levels, and actually doesn’t look as stretched when you zoom out

XOM 0.00%↑ is also a significant weighting in the XLE 0.00%↑ , and we can see that on a relative basis, has been a major contributor to the ETF’s performance since March of last year.

Stock making new highs is a good thing. We may be predisposed to think we missed a move up, but identifying the trend, relative strength, and price points of interest allows us to position trades to capitalize on the move.