Friday, June 26, 2015

Major Integrated Oil Stocks Once Again At Support (XLE; XOP)

The proxy for the majors is the Energy Select Sector SPDR ETF comprised of the biggest oil companies in the S&P 500. $75.68 last, down 15 cents. The multi-year low hit on Jan. 14, $71.70, is less than four bucks away.

From FinViz:
XLE  The Energy Select Sector SPDR Fund daily Stock Chart

I bring this up because the proxy for the smaller companies, the SPDR S&P Oil & Gas Exploration & Production ETF has traded decisively through its rising trend line. Again, from FinViz:

XOP  SPDR S&P Oil & Gas Exploration & Production ETF daily Stock Chart
Although still higher above the January low, in both absolute and percentage terms than the XLE, the little guys are acting as if the hot money that piled in on the up-moves is getting bored and/or scared.

See also May 29's "Chartology: Oil Stocks Are At A Very Interesting Price Level (XLE; XOP)".

And although we had to suffer the slings and arrows of outrageous fortune--you can quote that if you wish--because we've been counseling against getting back on board the love train--ditto--of energy equities as they made these 10-20% up-moves we still think it's too early.

"Wait For the ‘Second Low’ Before Buying Energy Stocks" (XLE; XOP)

*I'm Troy McClure. You may remember me from such earlier posts as:
Jan. 30

It's too early
"It's Too Early"
Jan. 12
It's Too Early
It's (still) Too Early
Jan. 2
It's Too Early 
Dec. 8
It's Too Early
Nov. 29
It's Too Early
Nov. 4
It's Too Early
Oct. 27
It's Too Early
Oct. 22
It's Too Early

Repetitious but at least we varied the type size/face. 
There are quite a few more during the summer-fall of 2014 from before we settled on the three word formulation. 
Going forward we'll try to change it up a bit for our patient (and long suffering) readers.