Energy Outperforms ⏤ Why Higher Prices Could Be Ahead
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– ETF Watchlist –
As we always say, there’s always opportunities in the market, no matter what direction things are going. Wednesday’s session brought the long awaited pull back we were anticipating after the surge in stock prices over the past several weeks. Whether this is a full-on reversal or just some healthy profit taking, it’s still too soon to tell. However, with that pull back new areas of the market received some life.
One of those areas of the market that has finally come back to life, energy… more specifically, oil names. With stocks in a free fall yesterday and the Saudis attempting to stabilize oil pricing, this sector was one of the few left standing after yesterday’s carnage.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
As oil seems to have found new legs in this market, we want to keep an eye on XOP to see if this turnaround has any legs that will keep the sector running. With the Saudis coming in to support healthy oil prices, there may be a little more fuel left in the tank and if the market continues to sell off then we could really see a run on energy stocks.
Nothing terribly convincing in terms of what the best trade is, but this is something you definitely want to keep on watch in case we do get a full rotation from the tech and consumer discretionary sectors.
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