XLE - Energy Select Sector SPDR Fund
| Previous Close | 61.23 |
| Open | 61.27 |
| Bid | 61.15 x 900 |
| Ask | 61.28 x 29200 |
| Day's Range | 60.98 - 61.51 |
| 52 Week Range | 53.36 - 78.36 |
| Volume | 20,035,840 |
| Avg. Volume | 14,765,634 |
| Net Assets | 10.07B |
| NAV | 61.22 |
| PE Ratio (TTM) | N/A |
| Yield | 3.71% |
| YTD Return | 9.59% |
| Beta (3Y Monthly) | 1.38 |
| Expense Ratio (net) | 0.13% |
| Inception Date | 1998-12-16 |
- InvestorPlace
3 Energy Stocks to Trade After the Saudi Arabia Strikes
Make no mistake about it, the energy oil trade is a manipulated market. Major entity Organization of the Petroleum Exporting Countries (OPEC) sets prices and production levels. This makes it difficult to trade energy stocks with confidence. But this is an aberration that I can use to my advantage to easily profit from them. Today we examine the opportunities in Energy Select Sector SPDR Fund (NYSEARCA:XLE), Chevron (NYSE:CVX) and Exxon Mobile (NYSE:XOM) stocks.It is amazing how often the experts are wrong on energy stocks trading. I have had consistent success simply trading their fundamentals and charts. What also helps is to acknowledge the fact that OPEC matters and they will keep crude oil prices inside the zone they need. When crude prices rise above $60, OPEC will bring it down so they don't lose market share. Conversely, they prop prices up when they fall too far below $52 per barrel.To successfully trade this notion I use mega-cap energy stocks like CVX and XOM. Or I use the ETF XLE instead since these two stocks make up almost half of the ETF. When it comes to trading, they are the Apple (NASDAQ:AAPL) of the energy sector and carry little risk of failure.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks to Buy for a Recession If I cannot bet on them long-term with confidence then I should not be trading at all. These had upside potential in early July but they never triggered. For example, XOM failed to break through $78 per share which left it vulnerable to the sharp correction that ensued. Similar setups happened in CVX and XLE. Energy Stock to Trade Now: Energy Select Sector SPDR Fund (XLE)Trading XLE stock has been difficult. It trails the S&P 500 and the United States Oil Fund, LP (NYSEARCA:USO) by about 15%. Clearly it has not been easy to bet on these stocks in spite of a healthy economy. But there is opportunity looming just above current prices.First we have to make sure that the XLE stock has a good base from which the bulls can spring. The good news is that it recently confirmed support at $56 as it bounced off of it into a 14% September rally. The bad news is, it now faces $64 per share which has been resistance. But therein lies the opportunity because breakouts often have to fail at their first face-off with resistance. Nevertheless, onus is on the bulls to retest and break through resistance on subsequent tries.Once the XLE rises above $64 then it can spring into a $5 rally from there. There will be resistance at $66, but with the right circumstances and market-wide momentum, XLE stock can do it. It is important to note that $64 has been pivotal since 2006 so it will be sticky. This means that buyers and sellers love to fight over it and will likely continue to do so this time around. Chevron (CVX)Of these three, CVX stock is my favorite. Chevron stock bounced well off of its confirmed support at $114 per share from the August correction. Luckily the bulls have almost erased the entire dip. From here the buyers are in control of the price action, however, they do have to contend with resistance above.CVX stock has failed to break through the $126 per share resistance zone for over a year. This marked last October's accident scene, and the more recent failed attempts from March and July. In spite of that, if the bulls are persistent they can eventually break through the neckline and overshoot hired. The target from that would be a healthy extension of the current rally that could target $135 per share.Admittedly, I don't like to buy and hope that a rally unfolds. So in this case and since I have proven support, I would much rather sell downside risk into what others fear. This way I can create income without any out-of-pocket expense. * 7 Momentum Stocks to Buy On the Dip For example, I can sell the January CVX $110 put and collect $2 for it. As long as CVX stock stays above my level than I retain my maximum gains without needing a rally. In fact the stock has to fall 13% before I start losing money. Worst case scenario is that I own CVX shares at $110 and accrue losses below $108 per share. Exxon Mobil (XOM)Exxon Mobil stock is similar to Chevron but with slight variations. It is lagging CVX year-to-date by about six percentage points. Moreover, it doesn't have the same clear confirmation of a bottom. Yes, XOM stock did bounce off a prior support level at $66, but the price pattern was different because of a failed attempt at $70 per share.Normally I would prefer selling downside risk as opposed to buying upside hopium. But XOM has a clearer breakout opportunity than CVX. The neckline above seems easier to breach since it is so much farther from the October ledge. If XOM closes above $75 per share it would trigger a buying program worth a $5 rally. It is important to wait for the breakout confirmation before chasing it. Otherwise I'd be anticipating and hoping things go my way. This also means that I may miss out on a few bucks while I wait and that is O.K. in my book.The general markets can make or break these potentials. XOM and CVX are stocks of actual companies, so they will rally with the stock market indices regardless of oil status. The XLE would follow in sympathy because these two comprise almost half of it.There is also an element of surprise baked into the price of energy. The fact that Saudi Arabia suffered a drone attack builds up the anticipation fear of another one, meaning the price of oil has hidden support from this. Fewer traders dare short it because of the possibility of such headlines for some time to come. We just saw oil spike almost 20% on this event so it will have lingering effect on traders.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post 3 Energy Stocks to Trade After the Saudi Arabia Strikes appeared first on InvestorPlace.
- ETF Database
Sell on the Pop Prospects: September 18 Edition
Here is a look at ETFs that currently offer attractive short selling opportunities. The ETFs included in this list are rated as sell candidates for two reasons. First, each of these funds is deemed to be in a downtrend based on the fact that its 50-day moving average is below its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading above its 20-day moving average, thereby offering a near-term 'sell on the pop' opportunity given the longer-term downtrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
- ETF Trends
After a Rest, Energy ETFs Can Keep Rallying
The Energy Select Sector SPDR (XLE) , the largest equity-based energy ETF, rallied Monday on news that a drone strike hit major Saudi oil assets, crippling 5% of global daily crude output. The attack came at an oil processing facility at Abqaiq and at a nearby Khurais oil field on Saturday, hamstringing 5.7 million barrels of daily crude production or 50% of the kingdom’s oil output. Saudi Aramco, the national oil company, reportedly is attempting to restore about one-third of its crude output, or 2 million barrels by Monday.
- Yahoo Finance
Why the Fed won't be bothered by oil prices: Morning Brief
Top news and what to watch in the markets on Wednesday, September 18, 2019.
- Yahoo Finance
Argus Technical Analysis – Know Your ETFs!
There is an old and very important saying for ETF investors: know what you're buying. With crude oil (WTI and Brent) up about 13% on Monday, one might expect huge gains in oil stocks. The largest Energy ETF (XLE) was up only 3.4%. On the other hand, oil-sensitive ETF's like XOP and OIH were up 9% and 11%, respectively. Why?
- Benzinga
Japan, China Most Exposed To Turmoil In Saudi Oil Production
The loss of production capacity following weekend attacks on Saudi Arabian oil production facilities and increasing tensions in the region highlighted the outsized impact the kingdom's oil supply has on China, which is already facing worries of economic sluggishness. China is the world's second-largest importer of oil from Saudi Arabia, having last year bought just under $30 billion worth of crude from the kingdom. The good news for China is that Saudi Arabia is only its second-largest supplier of crude oil.
- Benzinga
Oil Falls As Saudi Arabia Projects Quick Recovery From Drone Attack
The price of oil surged the most on record Monday after a drone attack on Saudi Arabia's oil infrastructure crippled its resources. Saudi Arabia said Tuesday it is close to bringing back online 70% of the 5.7 million barrels per day of oil impacted.
- MarketWatch
A jump in oil prices is creating trading opportunities in these investments
An attack on Saudi Arabian oil fields has removed about 5% of global oil supplies. As a result, oil prices have jumped. It sounds scary for oil and stock investors, but for the time being, the chart tells a different story.
- InvestorPlace
Stock Market Today: Crude Oil Rockets; Now What?
Oil prices are exploding higher on the day, with crude oil up 13% from its close on Friday. That obviously made big headlines in the stock market today, but it's not propelling energy stocks higher in the manner that many had expected.By now, many of you have likely read about the background story. For those that haven't, this is the short-but-sweet scoop. A drone strike rattled Saudi Arabia over the weekend, forcing the country to cut its oil production in half.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe move is equivalent to about 5 million barrels per day, or roughly 5% of the world's daily production.Here's where things get tricky though. Reports say that the production cut is mostly a precautionary measure and that most of that output should be back online within 48 hours.At first, many believed the attack was carried about Yemen's Houthi rebels. Now it is alleged that Iran is behind the attack, which would significantly ratchet up tensions in the Middle East and potentially implicate a response from other nations outside of it (including the United States). Oil's Big ImplicationsNow you know the backstory on why oil prices are surging. But the implications are incredibly far reaching. * 7 Tech Stocks You Should Avoid Now First, where can oil prices go? Let's keep one thing in mind: Oil prices are back to where they were in June. We're still notably away from the April highs and down significantly year-over-year. So while some may suggest that there's enough supply in the market to keep a lid on oil prices, the charts suggest there could easily be more upside.Impacting supply is a few different factors. The first, can Saudi Arabia actually get a majority of production back online in as little as two days, or is it a save-face move ahead of the eventual Saudi Aramco IPO? Second, will the U.S. and other oil-rich nations make up the difference? While 5 million barrels per day is admittedly a lot of oil, between the rest of the Organization of Petroleum Exporting Countries and the U.S., it seems like most of this deficit could be covered.Will President Donald Trump help eradicate a shortage in supply? He seems eager to, tweeting about tapping into the country's strategic oil reserves and fast-tracking pipeline permits. Lastly, will conflicts be ongoing and will tensions remain high in the Middle East? If the answer is yes, then not only are future supply disruptions possible, but energy investors will price in a risk premium to the oil market.Should we see a big spike in oil prices that sustains for months on end, that may have negative implications going into the fourth quarter and holiday seasons. The last thing consumers need -- both here in the U.S. and globally -- is a substantial rise in gas prices that persists into 2020.Finally, a bulk of Saudi Arabia's production goes to Asia. What implications could that have on China's economy, which is already feeling pressure from the trade war? Energy Stocks Make Big MovesSo far, the spike in oil has had a hit-and-miss impact on the energy sector. The Energy Select Sector SPDR Fund (NYSEARCA:XLE) climbed "just" 3.4% on the day. However, the VanEck Vectors Oil Services ETF (NYSEARCA:OIH) jumped 8.6% in the stock market today.Exxon Mobil (NYSE:XOM), which makes up 23% of the XLE, climbed a lackluster 1.5% on the day. Chevron (NYSE:CVX) makes up 22% of the ETF and jumped just over 2%. It's becoming clear why the XLE showed such little life on the day now.Others were more pronounced, though. Schlumberger (NYSE:SLB) jumped 5.3%, while Halliburton (NYSE:HAL) climbed almost 11% on the day. These are the top two holdings in the OIH, by the way.Occidental Petroleum (NYSE:OXY), BP (NYSE:BP) and Pioneer Natural Resources (NYSE:PXD) climbed 6%, 3.9% and 6.5%, respectively.Let's see if we can get more follow through in energy stocks this week, and what oil prices do over the next few days and weeks. Movers in the Stock Market TodayIt wasn't just energy stocks posting big moves on the day. General Motors (NYSE:GM) fell more than 4% after the United Automobile Workers, comprising 50,000 members, went on a nation-wide strike. It impacts 33 production plants and 22 warehouse facilities. JPMorgan analyst Adam Jonas said it will cost GM 3 cents in earnings per share per day, but that proper inventory management and pricing changes can help offset those losses. He likes GM as a buy-the-dip candidate.Despite winning the streaming rights for the renowned hit "Seinfeld," Netflix (NASDAQ:NFLX) shares were flat on the day. While some may question who wants to watch such an old show, just remember that "Friends" is one of Netflix's top shows. It will lose "Friends" in 2020, along with its other top performer, "The Office"). Unfortunately though, the five-year "Seinfeld" deal won't start until 2021.Shares of MGM Resorts International (NYSE:MGM) were up 2.1% after reports surfaced that Blackstone (NYSE:BX) is in talks to buy the Bellagio and MGM Grand. However, those discussion appear to be ongoing, as no deal has been reached yet (or may be reached at all, for that matter).Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Stock Market Today: Crude Oil Rockets; Now What? appeared first on InvestorPlace.
- ETF Database
8 Oil ETF Plays as Saudi Production Rocks Markets
Oil ETFs surged upwards of 10 percent Monday after attacks on Saudi oil production facilities Saturday knocked out 5.7 million barrels of daily production.
- Investopedia
Weak Hands Could Limit Energy Upside After Drone Attack
A crude oil shock has sent energy futures and funds higher, but a large supply of dumb money could limit gains.
- MarketWatch
Oil stocks surge, with all SPDR Energy ETF components rising
Energy stocks were broadly and in many cases sharply higher in premarket trading Monday, boosted by the spike in oil prices after the weekend attack on Saudi Aramco's Abqaiq oil processing plant. The SPDR Energy Select Sector ETF surged 4.2%, with all 28 equity components trading higher ahead of the open. Among the more active components, shares of Schlumberger Ltd. rallied 5.6%, Exxon Mobil Corp. gained 3.3%, Halliburton Co. advanced 5.3%, Occidental Petroleum Corp. ran up 4.9%, TechnipFMC PLC hiked up 3.3% and Chevron Corp. tacked on 3.1%. Elsewhere, Marathon Oil Corp. shares soared 10.4% and Chesapeake Energy Corp.'s stock shot up 15.2%. October crude oil futures jumped 8.2% to $59.37, while futures for the S&P 500 slumped 0.4%.
- Yahoo Finance
Has the oil market been wrong this whole time?: Morning Brief
Top news and what to watch in the markets on Monday, September 16, 2019.
- Yahoo Finance
FOMC meeting, big tech heads to Washington — What to know in the week ahead
Investors will turn their attention to Washington this week, as the Federal Open Market Committee gears up for its two-day meeting and representatives from big tech companies head to Capitol Hill to testify.
- Benzinga
Saudi Arabia's Oil Production Hit Following Drone Strikes
Saudi Aramco has had to cut production by as much as 5 million barrels a day after the Houthi rebel group in Yemen led a drone attack on the the biggest crude-processing plant. The shutdown amounts to ...
- Zacks
Guide to 25 Most-Liquid ETFs
We highlight some ETFs that are being traded in ample volumes lately.
- ETF Trends
Energy Sector ETFs Rally as New Saudi Minister Maintains Production Cuts
While the rest of the market was stuck in sideways action, energy sector-related exchange traded funds led the charge Monday on rising oil prices in response to Saudi Arabia energy minister’s confirmation ...
- ETF Trends
Energy Sector ETFs Standout on Inventory Drawdown, Trade Talk Hopes
Energy sector ETFs surged Thursday after a surprise drawdown in oil inventories and hopes of progress in trade talks between the U.S. and China helped fuel risk-on sentiment in one of the most downtrodden ...
- GuruFocus.com
Stocks the Market Is Discounting the Most This Summer
Business challenges sent their prices down recently Continue reading...
- Yahoo Finance Video
Energy ETFs give up gains following attack on Saudi oil facilities
Oil and energy ETFs giving up some gains following the attack on Saudi oil facilities. Yahoo Finance's Akiko Fujita and head of ETF mutual fund research at CFRA, Todd Rosenbluth discuss.
- Yahoo Finance Video
David Bahnsen on market volatility, U.S.-China trade tensions, and global slowdown concerns
David Bahnsen of The Bahnsen Group joins Yahoo Finance's Scott Gamm on the floor of the New York Stock Exchange to discuss market volatility, U.S.-China trade tensions, and global slowdown concerns.
- Yahoo Finance Video
Saudi oil shutdown won't impact gas prices like in the past: Global Energy Institute President
Attacks on Saudi Arabia's oil facilities wiped out half of the country's oil capacity. That's roughly 5% of global daily oil production. But U.S. Chamber of Commerce's President of the Global Energy Institute, Marty Durbin, says the impact is not as big as in the past due to an uptick in American oil and gas production. He joins Yahoo Finance's Akiko Fujita to discuss.
- Yahoo Finance Video
'Quarter point cut' expected at upcoming Fed meeting
Yahoo Finance's Alexis Christoforous, Brian Sozzi and Jared Blikre discuss what's moving the markets with Kathy Jones, Chief Fixed Income Strategist at Charles Schwab around Tuesday's opening bell.
