|Bid||0.00 x 42300|
|Ask||0.00 x 1400|
|Day's Range||26.00 - 26.78|
|52 Week Range||23.89 - 44.81|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.52|
|Expense Ratio (net)||0.35%|
There was a time where crude oil prices (and energy stocks in general) were the hot topic like bitcoin and Beyond Meat (NASDAQ:BYND) are now. But crude oil now sits 60% below its 2008 highs, so it is far from its glory days. Furthermore, there is a chance that it will never get back to those levels.But this doesn't mean that we cannot trade energy stocks. There are always opportunities, especially in the oil stocks like Chevron (NYSE:CVX) and Exxon Mobile (NYSE:XOM). But before we delve into those particulars, we need to evaluate the commodity itself first.If you listened to the oil and energy experts, you probably got misled several times on the direction of oil prices. The popular opinion is often wrong. Big-name trading houses make high-profile calls about big moves in oil but they often peter out.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis happened in the last two months. When oil was rallying, consensus became that crude was headed back up to $75 per barrel and higher. I shorted oil in April on that headline and won. Then again, after it fell, the meme flipped bearish and the experts called for crude to fall to $45 or lower. So I went long on that warning and again won.The point of this is not to gloat, but to say that logic works better than any expert opinion when dealing with oil. So ignore their opinions and trade your own thesis.To that, there are certain things that are fact. If oil is too cheap, then OPEC loses money and they prop prices up. Conversely, if it gets too expensive then they lose market share so they manipulate prices lower.Their current good balance zone is below $60, but above $52 per barrel, where crude oil is under current conditions. This level here has been pivotal since 2015. So I don't chase prices when they stray too far from it in either direction.I know these arguments draw chuckles at in a room full of oil experts, but they haven't failed me yet. So I will share my opinion on the stocks that depend heavily on the price of oil.Exxon and Chevron are the two largest oil companies and so these stocks make good vehicles for trading energy prices. They have been the class of the field for decades and this is not going to change anytime soon. They have the know-how and the budget to remain the leaders and the best proxies oil. * 10 Best Stocks to Buy and Hold Forever XOM and CVX are not always a buy, so you won't see a pump job here today. Rather, you'll see a realistic evaluation based on a blend of technical and fundamental observations. The methods of chasing the breakouts or breakdown vary based on personal preference. For example, I prefer using options, especially with relatively slower moving stocks like these. I like to sell puts or spreads to take bullish directional bets and sell call spreads for bearish ones. Exxon Mobile (XOM)Source: Mike Mozart via Flickr (Modified)In the post 2007 financial debacle era, Exxon stock has had a solid floor around $70 per share. This is not a coincidence because it's the pivot zone for the last 12 years. Fundamentally, XOM stock is reasonably priced at a price-to-earnings ratio of 15 and 1.1X sales. So if oil prices are stable there is no obvious reason to short the stock. So as long as the equity markets are rising, then it owning XOM is relatively safe.From an investment perspective XOM pays a hefty 4.5% dividend. This is huge since the central banks are stingy, so a guaranteed dividend is a good alternative and a viable, trade-able thesis.But from a trading perspective, this is not the greatest strategy because of the shorter time frame. So for the purpose of finding tactical ways to trade XOM, traders need to find more surgical entry points on the charts.Technically, it's not ideal to keep testing support on a chart. XOM has been doing this for years and since the May 2014 high it has done so from lower highs. But this gives traders a reasonably predictable pattern to time.The range in XOM is tightening and a move is coming. There are trigger lines just above and below current prices. So not to guess the direction and risk losing money, I'd wait for the breach of either sides to chase in that direction.For a bullish trade, I chase the breakout above Monday's highs; $78 per share has been pivotal since April and it marks the start of a potentially bullish pattern. The buyers will chase the breakout for a momentum trade to target $81.50 per share and fill the open gap there. If that happens, there will be resistance between $79 and $80 per share.For the bearish bet, I would short XOM if the bulls fail to hold $75.50 per share. This should be support and losing it would denote unusual weakness that could offer a chance to press but with tight stops. Why? because XOM is too close to its decade long support zone.However, there is a small risk of a big correction scenario to $55 per share if that support fails. This is not my forecast and for that to happen the current macro economic conditions will have to drastically change. Chevron (CVX)Source: swong95765 via Flickr (Modified)Unlike XOM, Chevron stock is close to its highs. So fundamentally it carries a little richer valuation on Wall Street but only from the price times sales perspective. CVX also pays a slightly lower dividend yield, but still a respectable 4%.There isn't a clear entry point for an investment in CVX stock yet given that it's close to its highs while energy prices are volatile. I'd like to get it closer to $115 per share before considering it from the long side. This is especially true for the traders but it also makes for a better starting point, even for those looking for an investment.The fundamentals on CVX stock are stable, just like XOM, but there is no urgent need to start long now and suffer loss of capital soon after opening the position. This is where the investors would do good to wear their traders' hats and wait for a clear breakout before starting a long position.CVX has been setting slightly lower highs since January of 2018. The current range between that high and the December lows has tightened into a point. So a move is likely coming, but we don't yet know its direction.So traders should wait for the clues from the chart. This is where fundamentals need the help of technicals. They provide unbiased opinions to help with the allocation of risk based on actual developments, not conjecture.If CVX stock closes above $126.20, then it would invite momentum buyers at $127.40 per share. They like to chase trend line breakouts. The idea is to buy high and sell higher. Should that happen, there will be resistance around $132 per share. While this would be a good opportunity for the traders among us, investors who intend on holding the shares a long time can also use the breakout to enjoy a good start to the position. * 10 Small-Cap Stocks That Look Like Bargains Conversely, if Chevron stock falls below $123, it could target $120.50 where it's likely to find footing. Even if that happens, it wouldn't change the fundamental setup for the stock. This would merely be the 50% retracement of the recent rally from $114 in May. SPDR S&P Oil & Gas Exploration & Production ETF (XOP)Source: Shutterstock Unlike CVX or XOM, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP) is not a company stock, but rather an exchange-traded fund that mimics owning the major exploration companies like Anadarko Petroleum (NYSE:APC), Diamondback Energy (NASDAQ:FANG) and Pioneer Natural Resources (NYSE:PXD).The prices for these stocks are definitely sensitive to the movement of the commodities they explore, so the XOP tracks the energy prices pretty tightly.The intrinsic value of the XOP's components don't hold up as well as XOM or CVX when oil prices fall. Case in point, the price of XOP is at least 60% off its all-time highs. And the trend is not stable either, as it has been in a descending channel of lower highs and lower lows for about five years.I usually don't like to buy down-trending tickers like this and hope for a turnaround. It is better to wait for the bottom to form. And since they don't ring bells at the bottom, we look for the right collection of signs.First, XOP has to form a trough, so it needs to stop making lower lows. It is also important for it to start making higher lows. At this point, it is OK for it to continue to set lower highs as long as the range is tightening.To this, we can argue that this is happening now since the December low. But so we don't chase a fake-out breakout, I'd wait for a close above $29 per share first and then above $31.8 per share before I chase. There will be strong resistance near $30.50, as it is a point of interest for the last 10 months.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 free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 F-Rated Stocks to Sell for Summer * 7 Stocks to Buy for the Same Price as Beyond Meat * 7 Penny Marijuana Stocks That Are NOT Cheap Stocks The post 3 Energy Stocks to Trade Now With Confidence appeared first on InvestorPlace.
US crude oil active futures rose 4.1% in the trailing week, which might have supported or limited the downside in OIH, XOP, XLE, and AMLP.
US crude oil active futures have risen 8.6% in the trailing week, which might have boosted or limited the downside in OIH, XOP, XLE, and AMLP. They have returned 5.8%, 5%, 3.7%, and -0.7%, respectively.
US crude oil active futures have fallen 0.6% in the last week, possibly dragging down or limiting XOP, XLE, OIH, and AMLP, which have returned -1.4%, 0.7%, 1.3%, and 0.7%, respectively.
The future course of oil prices and energy ETFs rest on the fate of U.S.-China trade tensions and extension of the output cut deal after June.
Decoding the Energy Sector's Key Events This WeekKey energy eventsThe EIA (U.S. Energy Information Administration) is scheduled to release its oil and natural gas inventory data on May 30. The data will likely be a short-term driver for oil and
Oil and Broader Market Dragged the Energy Portfolio(Continued from Prior Part)Correlation with US crude oilOn May 16–23, major energy ETFs had the following correlations with US crude oil active futures:the Energy Select Sector SPDR ETF (XLE):
What Impacted Your Energy Portfolio?(Continued from Prior Part)Correlation with US crude oilOn May 9–16, major energy ETFs had the following correlations with US crude oil active futures:the VanEck Vectors Oil Services ETF (OIH): 90.7%the SPDR
How Oil and Equity Market Are Affecting Your Energy Portfolio(Continued from Prior Part)Correlation with US crude oilOn May 2–9, major energy ETFs had the following correlations with US crude oil active futures:the SPDR S&P Oil & Gas
Chevron, facing the failure of its $30 billion bid for Anadarko, is likely to quickly pursue takeovers of oil competitors to build out its empire.
Exchange-traded funds (ETFs) are often aimed at conservative investors with long-term time horizons. Many of the largest ETFs on the market today are designed to provide cost-effective exposure to basic asset classes, such as domestic stocks, international equities and high-grade government bonds.Another selling point of a slew of ETFs to buy is that these funds feature broad lineups of stocks, a strategy that reduces concentration risk while eliminating the need for stock picking. Bottom line: may of the top ETFs to buy are inexpensive and easy to understand, selling points that were the foundation of the ETF industry two decades ago and traits that are likely to continue driving the industry's exponential growth.However, the ETF business is evolving and that evolution has led to the introductions of products aimed at more risk-tolerant traders and investors. Some of the better ETFs to buy for more adventurous investors include thematic funds while others are designed to be more tactical in nature.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Strong Buy Stocks That Tick All the Boxes Put it this way: if you're an investor with an adventurous spirit, there are plenty of ETFs to buy, but in many cases, that does not mean an investor should take on high levels of risk for extended periods of time. For investors looking to juice their returns or simply take on some added risk, here are some ETFs to buy. Best ETFs to Buy for Gamblers: ProShares UltraShort QQQ (QID)Expense Ratio: 0.95% per year, or $95 on a $10,000 investment.The ProShares UltraShort QQQ (NYSEARCA:QID) is designed to deliver double the daily inverse returns of the widely followed Nasdaq-100 Index, so if that index declines by 1% on a particular day, QID should rise by 2%.In other words, QID is a bad ETF to buy when the Nasdaq-100 is going up, something that tech-heavy benchmark has made a habit of doing over the course of the past decade. The current market environment clearly favors growth and technology stocks, two of the fortes of the Nasdaq-100, making QID an ETF to buy for contrarians or those looking to hedge long positions in Nasdaq-100 funds.In either case, investors should note QID and other leveraged ETFs are intended for short-term traders, not to be held for long holding periods, because the longer a leveraged ETF like QID is held, the more the chances increase that the fund will deviate from its stated objective.Interestingly, market participants have added nearly $181 million to QID this year. Global X MSCI Greece ETF (GREK)Expense Ratio: 0.59%The Global X MSCI Greece ETF (NYSEARCA:GREK) is the only U.S.-listed ETF dedicated to Greek equities. After years of being saddled by austerity measures and borrowing billions from the International Monetary Fund (IMF) and the European Union (EU), Greece is finally on the right fiscal path.GREK is up nearly 22% year-to-date, indicating investors view this as an ETF to buy."In Q1, the markets were up 15.2% and forecasts put 2019 GDP growth at annualized 2.4%, versus Europe at just 1.3%," said Global X in a recent research note. "Greece's improving growth prospects could portend the start of a virtuous cycle for Greece, making it a standout against the weak backdrop of a sluggish Europe." * 7 Energy Stocks to Buy to Light Up Your Portfolio What makes GREK a risky ETF to buy is, among other factors, a standard deviation of 24%, which is well above the comparable metric on emerging markets and Eurozone benchmarks. Those are relevant comparisons because Greece is a Eurozone member and classified as an emerging market. VanEck Vectors Junior Gold Miners ETF (GDXJ)Expense Ratio: 0.53%Among risky industry and sector ETFs to buy, mining funds are certainly part of that conversation and precious metals mining funds, such as the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) are among the best ETFs to buy for risk-tolerant investors.GDXJ is a fine ETF to buy for an active, risk-aware trader looking to make a bet on rising gold prices. One of the risks, however, with gold mining ETFs is that the funds are not always responsive to higher bullion prices. Amplifying the risk profile is that when gold prices decline, shares of miners often overshoot spot gold's declines.Add all that into the wrapper of a small-cap fund and GDXJ is a volatile ETF to buy. The fund's standard deviation of more than 31% is well above that of basic gold funds and traditional small-cap ETFs. iPath Global Carbon ETN (GRN)Expense Ratio: 0.75%The iPath Global Carbon ETN (NYSEARCA:GRN) definitely is not a good ETF for all investors. This niche, lightly traded exchange-traded note (ETN) tracks the Barclays Global Carbon II TR USD Index.That index "is designed to measure the performance of the most liquid carbon-related credit plans. Each carbon-related credit plan included in the index is represented by the most liquid instrument available in the marketplace. The index expects to incorporate new carbon-related credit plans as they develop around the world," according to the issuer. * 10 Cheap Stocks to Buy Now While GRN has low correlations to traditional asset classes, the fund is not for conservative investors due to its history of high volatility. Not to mention, most investors can live without carbon credits in their portfolios. SPDR S&P Oil & Gas Exploration & Production ETF (XOP)Expense Ratio: 0.35%For adventurous investors looking for energy sector exposure, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP) is one of the best ETFs to buy. XOP can be great when oil prices are trending higher because exploration and production stocks are typically more correlated to crude prices than integrated oil companies.XOP does come with the disclaimer that, as is the case throughout financial markets, there is no such thing as a free lunch. Compared to traditional energy funds that are heavily allocated to stocks like Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), XOP is significantly more volatile.The added volatility gets compounded when oil prices decline. When that happens, XOP and rival exploration and production ETFs often produce losses that far exceed those of basic energy ETFs. Direxion Daily S&P Biotech Bull 3X Shares (LABU)Expense Ratio: 1.12%Like the aforementioned QID, the Direxion Daily S&P Biotech Bull 3X Shares (NYSEARCA:LABU). In the case of LABU, this leveraged funds tries to deliver triple the daily returns of the S&P Biotechnology Select Industry Index, so if that index rises by 1% on a particular day, LABU should jump by 3%.LABU is one of the best ETFs for risk tolerant because it amplifies the combination of biotechnology and volatility. Data confirm as much. Over the past month, LABU is one of Direxion's most volatile bullish leveraged ETFs, a status LABU frequently attains. * The 10 Best Stocks to Buy for May LABU is also one of the best ETFs for aggressive traders to deploy during biotechnology earnings season and around news events such as drug approvals and industry consolidation. What that means is traders should treat LABU like the short-term instrument it is. VanEck Vectors ChinaAMC SME-ChiNext ETF (CNXT)Expense Ratio: 0.65%Chinese small-caps probably are not the asset class for your retirement portfolio, but the VanEck Vectors ChinaAMC SME-ChiNext ETF (NYSEARCA:CNXT) is one of the best ETFs for investors seeking tactical exposure to the world's second-largest economy. CNXT fills some useful voids in international portfolios because many traditional China funds focus on large caps whereas this fund focuses on mid- and small-cap stocks.CNXT's underlying index "tracks the performance of the 100 largest and most liquid China A-share stocks listed and trading on the Small and Medium Enterprise ("SME") Board and the ChiNext Board of the Shenzhen Stock Exchange," according to VanEck.The weighted average market value of CNXT's 100 holdings is $12.8 billion, putting the fund just inside large-cap territory, but that number is still well below the average market caps found on holdings in traditional China ETFs.CNXT can be a bumpy ride. The fund is up 20% year-to-date, but that's after shedding 18% over the past month.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Tick All the Boxes * 7 Stocks to Buy From the T. Rowe Price Health Sciences Fund * 5 Tech ETFs to Plug In to Big Profits Compare Brokers The post 7 ETFs for Investors With a Gambler's Spirit appeared first on InvestorPlace.
Energy Weekly: Will US Crude Oil Hold $60?(Continued from Prior Part)Energy subsector ETFsIn the week ending May 3, major energy subsector ETFs had the following performances:The VanEck Vectors Oil Services ETF (OIH) fell 5.5%.The SPDR S&P
Iran shot down a U.S. military drone, the latest incident to fan red-hot tensions in the Middle East. The U.S. said the drone was doing surveillance and was not in Iranian airspace. President Trump tweeted this morning "Iran made a big mistake." Yahoo Finance's Adam Shapiro and Julie Hyman discuss with Efficient Advisors Chief Investment Officer, Larry Shover.
Oil prices are surging today after an earlier attack on two tankers in the Gulf of Oman. THE ENERGY WORD Founder Dan Dicker discusses with Yahoo Finance’s Adam Shapiro, Julie Hyman, and Rick Newman.