U.S. equities are drifting higher on Tuesday, hitting fresh all-time highs early in the session before some selling pressure hit the tape. There are no major catalysts in play, just a continuation of recent themes: vaguely positive feelings about President Trump’s plans, relatively strong quarterly results and a comfortable impression that the Federal Reserve isn’t in a hurry to hike rates again.
Yet the nervousness that’s been in place since the post-election uptrend more or less stalled in early December remains.
Breadth is uneven, with a number of basic materials, energy and financial stocks moving lower. There are rumblings of trouble out of Europe ahead of elections. And China’s debt markets remain vulnerable amid currency and fixed-income volatility, along with word overnight that foreign exchange reserves dropped below $3 trillion for the first time since 2011 (amid efforts to stabilize the yuan).
Most importantly, the U.S. dollar is breaking higher again, ending a three-month pullback, which in turn is putting pressure on crude oil that is already being hit with headwinds from increasing U.S. shale activity and doubts about the enforcement of that OPEC output freeze agreement, but from bearish inventory data as well.
Here are four energy stocks to sell before they blow up in your portfolio:
Energy Stocks to Sell: Chevron (CVX)
After a brief blip higher, Chevron Corporation (NYSE:CVX) shares have reversed lower and are testing critical support from the late January low.
Investors were disappointed with the top- and bottom-line miss reported on Jan. 27. Despite a 7.7% rise in revenues and aggressive expense cutting, profitability still came in soft.
The company will next report results on April 28 before the bell. Analysts are looking for earnings of 90 cents per share on revenues of $34.16 billion. Edge Pro subscribers are holding a position in the Feb $110 CVX puts.
Energy Stocks to Sell: Chesapeake Energy (CHK)
Chesapeake Energy Corporation (NYSE:CHK) shares are drifting lower, moving in on the 20-day moving average that was last crossed in July. Pullbacks in August and again in November held above this level.
A breakdown would put an end to the uptrend going back to last February. Mizuho analysts, in an initiation note on Dec. 20, acknowledged balance sheet leverage remains a concern.
The company will next report results on Feb. 23 before the bell. Analysts are looking for earnings of seven cents per share on revenues of $2.09 billion.
Energy Stocks to Sell: Occidental Petroleum (OXY)
Occidental Petroleum Corporation (NYSE:OXY) shares are breaking down and are headed for a retest of the November low near $64. A breach of that level would set up a drop all the way to the January 2016 low of $56, which would be worth a 15% decline from here.
Management reported weaker-than-expected results on Nov. 1, with earnings missing by three cents for a loss of 15 cents per share. Revenues fell 15% from last year to $2.65 billion.
The company will next report results on Feb. 9 before the bell. Analysts are looking for a loss of three cents per share on revenues of $2.71 billion.
Energy Stocks to Sell: ConocoPhillips (COP)
ConocoPhillips (NYSE:COP) shares have once again dropped below their 50-day moving average — continuing a topping pattern going back to the mid-December high of $53.
COP stock has been in a sustained uptrend since breaking up and out of a nine-month consolidation range back in September. But now, with broader doubts about the health of the energy sector, investors are backing away.
The company will next report results on May 4 before the bell. Analysts are looking for a loss of 1 cent per share on revenues of $7.75 billion.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
