Actionable news
0
All posts from Actionable news
Actionable news in FB: Facebook, Inc.,

Double Your Dough in the Energy Select Sector SPDR (ETF) (XLE)

Well what have we here? Is that strength in energy stocks I see!? As someone who has been selling puts in the space for the entire year, can I just say it's about time? In case you missed it the Energy Select Sector SPDR (ETF) (NYSEARCA: XLE ) popped 1.46% Wednesday on heavy volume. Looks like the luck for XLE bottom-fishers may be about to change.

Source: Shutterstock

By the way, the high-volume hop in XLE was accompanied by an even more impressive rally in SPDR S&P Oil & Gas Explore & Prod. (ETF) (NYSEARCA: XOP ) and Vaneck Vectors Oil Services ETF ( OIH ). Together, these three oil-related ETFs bested the performance of every other sector yesterday.

To chronicle the turnabout in energy stocks, let's begin with a weekly look at XLE.

XLE Weekly Stock Chart

The weekly trend has pointed lower for all of 2017. Its consistency has been uncanny, particularly considering the bullish undercurrent to the broader stock market. The energy sector has been one of the only areas where bears have yet to relinquish control.

But, as mentioned, it looks like their grip is slipping.

Source: OptionsAnalytix

This year's drop has carried XLE to its 50% retracement zone. That is...


More