The battered S&P 500 Energy Sector has raced into bull-market territory despite crude oil prices treading near 18-year lows.
The sector gained 22.27 percent in the five days through Wednesday, making it the third-fastest trek from a bear market low to a bull market in history, buoying holders of the sector-linked Energy Select SPDR Fund. The exchange-traded fund rose 3.6 percent on Thursday.
“The pain trade is clearly a rally in highly-indebted companies, and many oils clearly fit that category,” wrote Paul Sankey, managing director at Mizuho Securities.
U.S. shale companies were pummeled this month by oil prices that tumbled as much as 63 percent from March 9 when Saudi Arabia slashed prices for its customers and lowered production in response to