XLE has formed a dirty Bottom.
There are three catalysts that could power energy stocks higher:
- ECB is starting to work
U.S. economy may just improve in the second half of 2015 like the has been predicting
Number of rigs taken offline in the U.S. is starting to improve the supply/demand ratio
When playing the reversal of an entire sector, it’s often better to play an . The reason is that there’s safety in size. Old leaders can fall by the wayside as a new, leaner sector emerges from the ashes. Until new sector leaders emerge, an is a safer way to play a reversal in energy stocks in my opinion.