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XLE

Sector Winners and Losers week ending 2/26It's a good week to take a close look at the sectors and see how the market moved around during pullbacks in the major indexes. Energy (XLE) and Financials (XLF) were joined at the hip, finding themselves at the top of the sector list on Monday and Wednesday and at the bottom of the list on Friday. However the days spent at the top were enough to allow them to end the week in 1st and 2nd place. However, Energy was the only sector that could keep gains to end the week in the positive. Consumer Discretionary (XLY) and Technology (XLK) took a beating throughout the week as investors moved away from these sectors fearing the impact of inflation and higher interest rates. Utilities (XLU) is usually in play when investors are nervous. It showed up at the top of the list on Tuesday and Thursday, but ended the week at the bottom of the list. The cyclical stocks Industrials (XLI) and Materials (XLB) outperformed the SPX for a second week. Along with Energy and Financials, these cyclical sectors were top performers for the whole month of February.
SP:SPX
by drewby4321
6
Sector Winners and Losers week ending 2/19It was a week for the cyclical stocks. Energy (XLE), Financials (XLF), Materials (XLB), and Industrials (XLI) were the only sectors to close the week with gains. That was not the case for the entire week. Communication Services (XLC) started the week with gains but faded in the last two days. Utilities (XLU) had one day as the leading sector on Thursday, but moved back to the bottom of the list on Friday. Health Care (XLV) was the worst performing sector of the week.
SP:SPX
by drewby4321
Sector Winners and Losers week ending 2/12Energy (XLE) led for a second week in a row as crude oil prices continue to rise and optimism for economic recovery to bring demand back to oil and gas as transportation, travel and leisure sectors bounce back. Technology (XLK) and Health (XLV) led for Thursday as Energy pulled back for a day. However, Energy bounced back up to the week's highs on Friday. Consumer Staples (XLP) and Consumer Discretionary (XLY) both lost for the week. Core CPI numbers showed lower than expected inflation and weighed down on the two sectors. Utilities (XLU) was the bottom sector for the week. There was not much interest in this defensive play for equities this week.
SP:SPX
by drewby4321
4
Sector Winners and Losers week ending 2/5Energy (XLE) was back on top for the first week of February. The sector benefited from higher than expected demand in oil that also raise crude oil prices throughout the week. Technology (XLK) started the week in the lead, having a strong Monday. The Consumer Discretionary (XLY) took the lead on Tuesday. Financials (XLF) briefly moved to the top spot on Thursday, but was soon passed by Energy again. Health Care (XLV) was at the bottom of the list for the week. Materials (XLB) was the worst performing sector on Thursday, but led the sectors on Friday.
SP:SPX
by drewby4321
Dead wrong on Oil, but what now?Obviously my previous predictions on Oil were wrong, however, it is hard to forecast a vicious virus from the far East. Now, the doomsdayers are back, touting their long bond positions with gold, saying "I told you so." Those positions have worked, and oil has tanked. To be clear, I don't dislike bonds or gold here, but Oil is ripe for a rebound. We are deeply oversold, indeed, I believe this sell-off is far overdone. From a pure technical perspective, the RSI is now turning, and MACD looks to be bottoming out. We should retest the ~60 level again, as this was the previous range bound channel crude was trading in. If 50 is broken, this thesis is invalidated and I am dead wrong. We will see.
NYMEX:CL1!Long
by MT-Macro
Sector Winners and Losers week ending 1/29Real Estate (XLRE) and Utilities (XLU) are the top sectors for the week. Ouch! None of the sectors ended the week with gains as the S&P 500 pulled back -3.31%. Utilities led as the market opened on Monday morning. Communications (XLC) took a very brief lead on Tuesday, but the Real Estate took the top spot. Consumer Staples (XLP) attempted to take the lead on Wednesday, but couldn't hold the lead and ended in third place. Energy (XLE) was the worst performing sector of the week. The chart clearly shows the wild ride for the sectors on the last three days of the week. Wednesday had all sectors losing for the day. On Thursday, all sectors advanced. On Friday all sectors declined again. The relatively smooth ride for Real Estate, Utilities and Consumer Staples represents their position as defense moves for investors. All three sectors represent parts of the economy that must continue, even if other parts are recovering slowly or even failing.
SP:SPX
by drewby4321
Update on XLE: Uptrend test, TA signaling a correctionThe ETF's recovery is starting to show its first cracks as we have dropped from Yesterday's highs and closed without an attempt to buy the dip. Volumes were the around the average for the day and the fall could be mostly a result from long covering. But there are some technicals that suggest we may return back inside the range. RSI and MACD have bearish crossovers and RIS is also below 50. MACD's histogram is going negative. Current price is sitting on two major supports and today's price action will be an important one. This is an area for caution.
AMEX:XLEShort
by DailyChartist
Sector Winners and Losers week ending 1/22Communications (XLC) led the week with a big +5.44% gain, but only after a big pullback the week prior. The sector was led by Alphabet (GOOGL) and Facebook (FB) with +9.55% and +9.21% gains respectively. Those two companies make up 44% of the ETF. Netflix (NFLX) also had a huge gain of +13.49% but only represents 5% of the ETF. Technology (XLK) finished the week in second place, also with the mega-caps, Apple (AAPL) and Microsoft (MSFT) contributing the most to the gains. Financials (XLF) continued to underperform as more financial institutions reported earnings and disappointed investors. Energy (XLE) was the worst performing sector of the week. There is probably some influence from the new administration policies. However, the more immediate impact was from surprise surplus in oil supplies, signaling much lower demand for oil than anticipated. The only significant pivots during the week were on Wednesday, January 20th which was inauguration day. That day saw a spike in Communications, Technology and Real Estate (XLRE). The pivot for Communications and Technology were likely reinvestment into mega-caps that didn't seem to be in the crosshairs of any new policies, alleviating some fears of policies that would hurt big tech. The Real Estate pivot was driven by the additional assistance for renters proposed in the new stimulus package. The stimulus approved in December only covered the estimated amount of back rent owed, but the new stimulus package would extend rental assistance into the future.
SP:SPX
by drewby4321
Update on XLE: Potential continuation of the uptrendTaking a look back at XLE we can see that the ETF has returned to test the area of breach of the symmetrical triangle (or the current support of the descending trend line). Pick up in volume shows that the activity has risen and market participants are getting excited. A breach was made a classical follow-up test was made. Currently, we are sitting at the support and overall there was no attempt in Yesterday's market session to push below it. The dip was bought and XLE closed firmly with a fresh high for the day. Even though here RSI and MACD are laying out the perspectives for a deeper correction it may be "skipped". Recovery in energy assets may pull up the ETF away from the support for the uptrend to continue. My personal view is that trend will continue and XLE will rise, but it won't be wise not to forecast a negative scenario as well. The outlook will shift to negative if we see a strong push back inside the triangle. Fundamentals are still shaky with the COVID-19 pandemic still raging. This may raise the question of additional lockdowns or stopping global flights again, which will hit oil and energy prices overall.
AMEX:XLELong
by DailyChartist
1
THE WEEK AHEAD: HAL, NFLX, AA, UAL EARNINGS; EWZ, XLE, SLV, IWMHIGHLY LIQUID OPTIONS SINGLE NAME EARNINGS (LISTED CHRONOLOGICALLY IN ORDER OF ANNOUNCEMENT AND SCREENED FOR >50% 30-DAY IMPLIED): HAL (13/61/13.9%),* Tuesday, before market open NFLX (25/50/11.3%), Tuesday, after market close AA (18/69/15.9%), Wednesday, after market close UAL (13/64/14.8%), Wednesday, after market close From a bang for your buck perspective: AA ranks first, UAL, second, followed by NFLX, and HAL. I already have a covered strangle on in UAL and don't anticipate putting on more single name risk in the IRA (which is my primary focus running into retirement), but will naturally post a play should I get into one. EXCHANGE-TRADED FUNDS WITH >35% 30-DAY AND RANKED BY THE PERCENTAGE THE FEBRUARY AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE: EWZ (18/45/10.3%) XLE (23/42/9.7%) SLV (25/42/9.4%) GDX (12/38/9.2%) XBI (18/37/8.7%) KRE (16/36/8.7%) EWW (15/36/7.5%) I'm already in everything here but for KRE and EWW (the lowest bangs for your buck on the list) and the February monthly is a bit short in duration here for me (34 days) and March a tad long (62 days), so I may not do much this week in these, although going out to March with another rung in my GDX, SLV, and XBI positions isn't out of the question. BROAD MARKET RANKED BY 30-DAY IMPLIED: IWM (24/32/6.8%) QQQ (22/30/6.4%) SPY (16/24/4.8%) DIA (13/23/4.6%) EFA (14/20/3.8%) In spite of the fact that IWM and/or RUT have the higher 30-day, I may look at adding a July (181 days) rung to the SPY short put ladder I have on in the IRA, targeting the strike paying at least 1% of the strike price in credit (which would currently be something like the 240), and do the kind of "opportunistic rolling" I've been doing with shorter duration rungs. (See Post Below). Although most frown upon going out this far in time, it's a way to deploy otherwise underutilized buying power that will earn something >0% while I work shorter duration setups or wait for a higher implied volatility environment and/or greater weakness. Additionally, my goals for the IRA are somewhat modest from a return on capital standpoint: I'm not looking to hit homers or be an incredibly attentive investor, opting for a once a week or even a once a month schedule of looking at things, making adjustments as appropriate, and/or taking off stuff approaching worthless that doesn't merit hanging onto due to the amount of time left in the contract. * -- The first metric is the implied volatility rank or percentile (i.e., where the 30-day is relative to where it's been over the last 52 weeks); the second, thirty day implied; and the third, the percentage the at-the-money short straddle in the February monthly is paying as a function of stock price.
NYSE:HAL
by NaughtyPines
Sector Winners and Losers week ending 1/15The sectors had a wild race this week with the backdrop of a up and down market with several rotations between small caps, mid caps and large caps. Energy (XLE) would ultimately be the winner, supported by production cuts in Saudi Arabia, higher than expected demand for oil, and some positive news from OPEC. There was a significant pullback on Friday after SEC announced an investigation into Exxon Mobile (XOM) which makes up 23% of the XLE ETF. Financials (XLF) led must of the week as investors expect higher treasury yields boost performance for big banks. That turned upside down on Friday when Citigroup (C) and Wells Fargo (WFC) disappointed on revenue despite beating expectations on earnings. It was Real Estate (XLRE) and Utilities (XLU) that started to climb on Tuesday and were top performers on Friday. Those two sectors are defensive plays for equity investors. Both are expected to suffer less from market pullbacks. Materials (XLB) and Industrials (XLI) were also doing well earlier in the week, but pulled back on Friday. It could be that the nearly $2 trillion of stimulus promised by President-elect Biden is seen as a delay to the expected investments in infrastructure. Just a theory. Technology (XLK) and Communications (XLC) were at the bottom. The big tech mega-caps went up and down in price all week as money moved in and out of the segment. Communications, which includes companies like Facebook (FB) and Twitter (TWTR) suffered the most as investors fear negative impact of recent actions related to Donald Trump.
SP:SPX
by drewby4321
5
Revisiting XLE and the recovery of the energy sectorUpdate from a previous post: XLE developing nicely as the price has managed the get out of the range and yesterday we opened with a gap and there almost no attempt to push the price down and to fill the small gap. MACD's crossing is widening and the histogram is expanding as well. RSI moving to the overbought zone, but there is some more room for additional movement North before any correction. The energy sector is starting to recover more and more and demand for the ETF is rising as well. Volumes support the recent movement. My short-term target is $47.
AMEX:XLELong
by DailyChartist