The Trade To Make On A Sector That Could Explode Higher
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– ETF Watchlist –
The market shows no signs of slowing down at the moment, which is good for pretty much every sector… but healthcare, of course. One move worthy of note is that of Nvidia, which has climbed above 470 at the time of this writing, something to keep an eye could be the semi-conductor ETF, SOXL.
However, our trade to look at today comes thanks to the energy sector. With oil prices coming back to life, we think this trade has high probability as the sector ETFs are still somewhat lagging behind this move. Let’s take a closer look at what we mean below.
Energy Select Sector SPDR ETF (XLE)
Oil prices have been climbing over the past several weeks, but the sector ETFs you would normally use to track that move have yet to take part in the rally. Perhaps most notably, the XLE, which is only up 3% compared to oil’s near 9% move, has lagged behind in a big way.
However, we see this an opportunity rather than something to be worried about. If the ETF can retake that 84 mark on the back of some strength from oil prices, we think this ETF could take off in quite a hurry. Be sure to add this one to your watchlist as well!
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