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iShares US Energy (IYE) & Gold Continuous Contract (GC.F)

It has been an odd week for world markets, disrupted by Asia Pacific and North American holidays. Although several major North American indices have managed to nudge their way to new all-time highs, there doesn’t appear to be much of a tailwind behind them, perhaps because earnings and economic news flow has subsided for the time being. In this week’s issue of Equity Leaders Weekly, we look current strength in US Energy stocks and at the factors influencing recent weakness in Gold.

Devon Energy Corp. (DVN)

Devon Energy (DVN) entered the Green Favored Zone of the SIA S&P 500 Index Report back in October. In the last few days, it has been climbing within that zone, moving up 13 spots yesterday to 24th place. A major breakout is underway in which shares have gapped up through $20.00 to signal the start of a new upleg. This continues a series of bullish signals this year which started with the shares snapping out of a long-term downtrend on high volume, a sign of renewed investor interest.

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