49.99 +0.58 (1.17%)
Before hours: 8:51AM EDT
|Bid||49.57 x 1200|
|Ask||49.90 x 1800|
|Day's Range||47.19 - 49.45|
|52 Week Range||29.48 - 107.16|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-46.97%|
|Beta (5Y Monthly)||2.81|
|Expense Ratio (net)||0.35%|
Exchange-traded funds that track energy companies charged higher Tuesday on the heels of a 3% bounce in the price of crude amid reports that major producers may agree to extend caps on output that terminate at the end of June for one or two more months. The Energy Select Sector SPDR Fund rose 2.6%, making it the biggest gainer among the S&P 500 sectors midday. The Vanguard Energy ETF was also up 2.6%, and the SPDR S&P Oil & Gas Exploration & Production Fund popped 3.3%. XLE, the largest fund tracking the energy sector, is up nearly 13% over the past month, but has still lost about one-third of its value in the year to date. XOP, a popular way to play exploration bets, is up 10% in the past month, but has still lost about 42% of its value throughout 2020.
Invesco Chief Global Market Strategist Kristina Hooper joins Yahoo Finance’s Brian Cheung and Seana Smith to discuss Jerome Powell's remarks as the Fed chair notes the U.S. economy faces ‘great uncertainty.’
With equities on the ropes this week, it's time we looked at the best bear trades to bank on for the next market drop.The stock rebound since March has been violent. Its duration and magnitude have caught many traders by surprise, particularly those obsessing over the grim economic data. That said, trying to reconcile rising asset prices on Wall Street with the warzone on Main Street has generated more than a little cognitive dissonance.However, spectators convinced that the chickens would eventually come home to roost are seeing their forecast play out this week. Stocks are falling anew, especially in the most economically sensitive areas like small-caps.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 20 Stocks to Buy If You're Still Betting on America to Thrive So, rather than try to pick which individual stocks, we're focusing instead on playing the weakest industries. There are many to choose from, but here are three underperforming ETFs that look particularly vulnerable: * iShares Russell 2000 Index ETF (NYSEARCA:IWM) * SPDR S&P Banking ETF (NYSEARCA:KRE) * SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP)Let's break down the charts of each, and build high reward bear trades on each. High Reward Bear Trades: iShares Russell 2000 Index (IWM) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade If you find the Nasdaq Composite ETF (NASDAQ:QQQ) index a stone's throw from all-time highs a bit quizzical given the horror show that is the economy right now, then it's because you're looking at the wrong basket of stocks. While tech mega-caps have found themselves largely insulated from the nasty price action, small-caps have not; They've born the brunt of the damage.From peak-to-trough, the Nasdaq Composite ETF only fell about 30%. By contrast, the Russell 2000 Index was down 41%. And though the selling pressure eased through the back half of March and all of April, the relative weakness remained. Currently, QQQ is only 7.5% off its peak, but IWM is off by 26.5%.Moreover, the rationale for small-caps' weak ways is simple: They're more sensitive to economic downturns. With this week's whack, IWM now sports a lower-swing high and lower low. Though it rallied back by day's end, it also pushed below the 50-day moving average. Wednesday's slide was particularly ugly, with volume swelling past 58 million shares.If you're willing to bet the downturn returns IWM close to March's low over the coming two months, then here's a trade that will deliver big returns:The Trade: Buy the July $105/$100 bear put spread for around 90 cents.You're risking 90 cents to make $4.10 if IWM falls to $100. SPDR S&P Banking ETF (KRE) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade One of the industries weighing on small caps has been regional banks. The specter of a deep recession caused investors to flee KRE throughout February and March. Ultimately, the fund fell 52% from 2019's peak before a bottom was found. But the bounce-back has been meager compared to the robust buying elsewhere.What's worse, this week saw KRE crack support and tumble below its 20-day and 50-day moving averages. Momentum increased during the downswing to confirm sellers have returned to power. Thursday's session is giving bulls some hope but it's going to take more than a single session of strength to right this hole-ridden ship.If you think we ultimately return to March's levels of $27, then this bear trade offers a smile-inducing payout.The Trade: Buy the July $30/$27 bear put spread for around $1.00. * 5 High-Quality Company Stocks to Buy For Less Than $10 You're risking $1 to make $3 if KRE sits below $27 at expiration. SPDR S&P Oil & Gas Exploration & Production ETF (XOP) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade The final spot ripe for bear trades is the energy sector. Specifically, we're focusing on the Oil & Gas ETF, XOP. It's performed far worse than the Energy Sector ETF (NYSEARCA:XLE) in large part because it lacks the heavy weighting toward large caps that XLE does.Crashing oil prices have done a number on all energy-related ETFs. Some companies have already declared bankruptcy, and it could be just the beginning. While it's true that XOP has enjoyed a nice rebound off its lows, even rising north of the 50-day moving average, it remains one of the more vulnerable areas of the market. This week's drop saw XOP break short-term support and its 20-day moving average. It's the first support breach since the uptrend began and could spell the start of the next downswing.Once again, we're harnessing bear put spreads to profit.The Trade: Buy the Sep $35/$30 put spread for $1.00You're risking $1 to make $4 if XOP is below $30 at expiration.For a free trial to the best trading community on the planet and Tyler's current home, click here! As of this writing, Tyler held bullish IWM positions. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 High-Reward Bear Trades for the Next Market Crash appeared first on InvestorPlace.
Yahoo Finance’s Emily McCormick joins Seana Smith to break down why short-seller David Einhorn is questioning Tesla's billing practices.
President of Pacer ETFs Sean O’Hara joins Yahoo Finance’s Seana Smith on The Ticker to discuss the energy sector, after oil prices lost a fifth of their value yesterday.
Energy markets and sector-related ETFs surged Wednesday, recouping some of the previous losses, despite reports of rising crude stocks. Among the best performing non-leveraged ETFs of Wednesday, the SPDR ...
The OPEC and its allies including Russia are reportedly in discussion for deeper output cuts by another 500,000 barrels a day to stabilize the coronavirus-infected oil price.
Despite a strong 2019 for stocks, one of the sectors that was hesitant to jump to record highs was the energy sector. One of its main drivers, oil, could be reaching a peak, according to Chevron CEO Michael ...
As China promises to increase purchases of oil and gas from the United States under the phase-one trade deal, we highlight some ETFs that can gain.
Gains were fleeting for oil bulls following the U.S. airstrike in Iraq that killed an Iranian general, which saw prices skyrocket before subsequently falling as tensions began to subside. Putting further ...
Saber rattling in the Middle East created a roller coaster ride in asset prices this week. Oil prices initially ripped and then rapidly reversed yesterday, ending with a nasty 4% drop. Energy stocks fell across the board in the wake of the whiplash. While the volatility can be fear-inducing, it also brings opportunity.Today we'll focus on three ways to play the oil drop.The energy sector just ended a decade worth forgetting. While the S&P 500 more than doubled, the Energy Sector ETF (NYSEARCA:XLE) finished right where it began. Sure, shareholders received some dividends along the way, but the cash flow pales in comparison to the giant gains had by the broader market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the extreme relative weakness has led to low valuations, and that could make energy a pond worth bottom fishing in. Tack on this week's volatility fit in crude oil, and we have the excuse needed to shine a spotlight on the space. * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever Here are three smart trades in oil stocks. Oil Stocks to Play Now: United States Oil Fund (USO)Source: The thinkorswim® platform from TD Ameritrade Our first idea dispenses with clever derivative plays and goes straight for the jugular. If you think the oil drop presents weakness worth buying, then do so directly with a trade on the United States Oil Fund (NYSEARCA:USO). It's a product designed to track the short-term movements in oil by holding crude oil futures contracts. Although it tends to lag crude over the long term, in the short run, it's a pretty good proxy.That means if oil rebounds in the coming weeks, USO should too.Yesterday's sucker punch took the oil ETF below its rising 20-day moving average, but the 50-day is still pointing higher, suggesting the intermediate-term uptrend is intact. Implied volatility jumped this week, breathing new life into options premiums. Let's build a naked put play to profit if USO sits above $12 a month from now.The Trade: Sell the Feb $12 puts for 28 cents. Oil & Gas (XOP)Source: The thinkorswim® platform from TD Ameritrade An alternate path to profits could be playing a broad basket of oil stocks via the Oil & Gas Explore & Prod. ETF (NYSEARCA:XOP). Stocks in this industry have been decimated over the decade and sit at the low-end of the ten years. While bottom fishing is a dangerous endeavor, we can increase our odds by using high probability options strategies like naked puts and covered calls. That way, we build a position that profits even if XOP treads water or drops a bit further.December's rise was enough to turn the 20-day and 50-day moving averages higher, so buyers do control the short-term trend. Wednesday's whack created a lower-risk entry, and I'm inclined to accept the gift with a naked put play. * 7 Stocks That Are Screaming Buys Right Now The Trade: Sell the Feb $22 put for 42 cents. Exxon Mobil (XOM)Source: The thinkorswim® platform from TD Ameritrade The final avenue involves trading the juggernaut in the space, Exxon Mobil (NYSE:XOM). It's a much less volatile pick than my prior two picks and presents a more conservative alternative. Dividend hunters will be particularly happy about this one. The steady drop in price over the decade has boosted the dividend yield to a mouth-watering 5%.Dividends present a silver lining when bottom fishing. If Exxon stock takes a while before recovering, you still get paid while waiting. XOM stock's price trend is more neutral than USO and XOP, but implied volatility has been steadily rising, and options premiums are pumped enough to warrant selling them.The Trade: Sell the Feb $67.5o/$65 bull put spread for around 70 cents.As of this writing, Tyler Craig didn't hold positions in any of the aforementioned securities. For a free trial to the best trading community on the planet and Tyler's current home, click here! More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post 3 Oil Stocks That Are Worth Looking Into Now appeared first on InvestorPlace.
Rising tensions in the Middle East is no doubt the prime mover right now when it comes to soaring oil prices, but oil tycoon Harold Hamm says that prices could move as high as 19%–irrespective of what ...
The Energy Select Sector SPDR (NYSE: XLE), the largest exchange traded fund dedicated to that sector, is up just 8% in 2019 with about half that gain being accrued just this month. Whether it's the December uptick in the energy sector or the group's status as a value destination, analysts are bullish on the sector heading into 2020. “At the sector level, analysts are most optimistic on the Energy (66%), Health Care (59%), and Communication Services (59%) sectors, as these three sectors have highest percentages of Buy ratings,” according to FactSet research.
Don't look now, but the energy sector is starting to percolate. Apparently we've reached the stage of the market rally where they're coming after the dogs. But don't hate, participate! I'll show you how by offering three different energy stocks to buy.Here are a few stats that illustrate just how hilariously bad energy and oil stocks have been. I'm using the Energy Sector SPDR (NYSEARCA:XLE) as the benchmark, but other popular funds for the space like Oil & Gas Explore & Prod (NYSEARCA:XOP) and Oil Services ETF (NYSEARCA:OIH) have been equally dismal.While the S&P 500 is perched at record heights, XLE is still 40% off its 2014 peak. The XOP ETF is even worse. It's lower than it was when Armageddon came to town in 2008.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYear-to-date, XLE is only up 2.6% while the S&P 500 is up 27%. That's some serious relative weakness.And here's the stat to top them all. The entire energy sector has fallen so far that it's worth less than a single company -- Apple (NASDAQ:AAPL). If you're a contrarian, that above all else should have alarm bells going off in your head. The fear and loathing have reached epic levels. * 10 Stocks to Buy That Lost 8%-Plus in the Past Month But here's the thing. Many energy stocks are finally starting to catch a bid. Here are three of the best in the oil services industry worth buying. Oil Services Stocks to Buy: Schlumberger (SLB)Source: The thinkorswim® platform from TD Ameritrade The easiest way to identify candidates is to look at the top holdings of OIH. Schlumberger (NYSE:SLB) tops the list, accounting for some 20% of the fund. Its weekly trend looks atrocious, but signs of a bottom have emerged this quarter. The rebound has been strong enough to reverse the 20-day and 50-day moving averages higher and SLB stock even powered above its 200-day moving average for the first time since last July.We're now testing overhead resistance at $40. This price has kept a lid on the stock through the back half of the year, so vaulting above it will mark a big change in character.This quarter's bullish behavior has me in the bottom fishing mood. SLB share's low price tag makes them a prime candidate for naked puts.The Trade: Sell the Jan $37.50 put for 60 cents. Halliburton (HAL)Source: The thinkorswim® platform from TD Ameritrade Halliburton (NYSE:HAL) is the second-largest holding in OIH, accounting for about 12% of the fund. One glance at its chart reveals HAL is the veritable twin of SLB. They are virtually identical. So all of the bottoming characteristics identified on SLB are shared by HAL.So let's skip the redundant chart comments and elaborate on why naked puts are attractive here.The cheap price tag of SLB and HAL keep the margin requirement for short puts low enough to pump up the return on investment. By selling puts, we're obligating ourselves to buy shares at a discount to the current price. If the puts expire worthless due to the stock remaining bullish, we pocket the premium we received upfront. But if the stock drops, we get to buy shares of a company we wanted exposure to anyways.That's a win-win. * 7 Impressive Stocks to Buy Over $250 The Trade: Sell the Jan $24 puts for 50 cents. National Oilwell Varco (NOV)Source: The thinkorswim® platform from TD Ameritrade National Oilwell Varco (NYSE:NOV) rounds out today's list with a similar setup as its predecessors. NOV stock's recovery has been subtle but steady over the past few months. An ascending triangle has formed, reflecting a slight uptick in demand on each selloff. And now, NOV is knocking on the door of a major ceiling at $24.50.A break above it will signal the completion of its eight-month bottoming process and potentially spark the next leg of its nascent uptrend.Once again, naked puts are my play of choice if you're willing to bottom fish here.The Trade: Sell the Jan $23 puts for around 45 cents.As of this writing, Tyler Craig held bullish positions in OIH. For a free trial to the best trading community on the planet and Tyler's current home, click here! More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 8 Biggest Investing Surprises of 2019 * 7 Impressive Stocks to Buy Over $250 * 4 Small-Cap Energy Stocks Ready to Explode The post 3 Energy Stocks to Buy appeared first on InvestorPlace.
Throughout 2019, talk of slowing global growth spurred talks of a worldwide recession that was backed up further by another reliable recession indicator—an inverted yield curve. “The stock/bond ratio has bottomed prior to the economy in each of the last seven global slowdowns,” Geisdorf wrote in an analysis.