VTOL - Bears are attacking leaders; MKM says these energy stocks are at risk

No sector is safe in bear markets and the current selling of winning stocks is typical of the later innings of market declines, MKM Partners says. "The high degree of correlation between Crude Oil (CL1:COM) (USO) (CO1:COM) (BNO) and Energy stocks (NYSEARCA:XLE) broke last week," MKM Chief Market Technician J.C. O'Hara wrote in a note. "Energy equities experienced nearly double the selling pressure compared to WTI crude." "Year to date, Energy is the sole sector in the green ... but concern now is that fact that Bears are coming after winners, thus they may take Energy down," O'Hara said. "The Energy Sector undercut its rising 50 DMA and now looks lower to the rising 200 DMA, which is currently -9% below last Friday's close. Crude Oil is sitting on its rising 50 DMA and has a stronger technical pattern." "Normally we like to buy pullbacks within uptrends," he added. "Our

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Bears are attacking leaders; MKM says these energy stocks are at risk