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Actionable news in APC: ANADARKO PETROLEUM Corp,

Anadarko Petroleum's Relative Strength Is Signaling Black Gold Ahead

Relative strength, relative strength, relative strength!

When the overall stock market is dropping large like it was on Thursday, then that's what you want to be looking for--relative strength.

Relative strength loosely defined in terms of the stock market is simply scanning through every sector to see which stocks did not go down. These are the names and sectors that sellers were absent from, or were already exhausted from a technical perspective. One sector that stuck out like a sore thumb on Thursday was the oil complex.

Oil futures finished Thursday's trading session slightly higher, to around $45 a barrel, extending a sixth straight session rally. Oil players like EOG Resources Inc. (EOG) , Devon Energy Corporation (DVN) and National Oilwell Varco Inc. (NOV) , all finished slightly higher on the session. This is a clear demonstration of relative strength in the face of an overall market bloodbath.

Sometimes relative strength is just a one-day wonder, and the sellers quickly regain control, taking the sector lower again. However, many times it's a solid tell that the sellers are done and that new buyers are stepping in...


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