Exxon Mobile is fairly characteristic of how people feel about energy and oil stocks recently. Our Twitter Sentiment Indicator for XOM has been reaching extreme levels.  The last time we saw readings near or above .80 it turned out to be an initiation thrust that helped push the stock to new highs.  In fact, the move not only broke several months of recent consolidation, but was strong enough to also clear the early 2011 highs. Sentiment on Twitter for oil stocks like XOM have shown high readings as the stocks are seeing new highs.  It looks like the extreme sentiment may indicate the stocks are oversold.  Our smoothed indicator is rolling over which may be signaling XOM is ready to consolidate the move through the 86 level.  A correction back to the 84-86 level would be healthy as it will allow sentiment to clear its overbought condition.  It will also provide money managers and traders alike an opportunity to buy at a low risk entry point and a small discount.

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