Get started

XLE

Tech stock Vs Energy stocks. The Competition for Decades This is an education-style publication where the main graph is a comparison (ratio) between two ETFs (funds) managed by State Street Global Advisors Corporation, the creator of the world’s first ETF (well-known in nowadays as AMEX:SPY ) and an indexing pioneer. The first one ETF is The Technology Select Sector SPDR Fund, AMEX:XLK . 👉 AMEX:XLK seeks to provide investment results that provide an effective representation of the Technology sector of the S&P 500 Index SP:SPX . 👉 AMEX:XLK seeks to provide precise exposure to companies from Technology hardware, storage, and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electronic equipment, instruments and components. 👉 AMEX:XLK is a place where securities of American World-known Technology companies like Apple Inc. NASDAQ:AAPL and Microsoft Corp. NASDAQ:MSFT , like Nvidia Corp. NASDAQ:NVDA and American Micro Devices NASDAQ:AMD , like Cisco Systems Inc. NASDAQ:CSCO and Adobe Inc. NASDAQ:ADBE meet together. 👉 In contrast with other Technology-related ETFs like NASDAQ:QQQ (Invesco Nasdaq 100 Index ETF) or NASDAQ:ONEQ (Fidelity Nasdaq Composite Index ETF), stocks allocation in AMEX:XLK depends not only on their market capitalization, but also hugely on Technology industry allocation (like software, technology hardware, storage & peripherals, semiconductors & semiconductor equipment, IT services, communications equipment, electronic equipment instruments & components). That is why allocation of Top 3 holdings in AMEX:XLK ( Microsoft Corp. NASDAQ:MSFT , Apple Inc. NASDAQ:AAPL and Broadcom Inc. NASDAQ:AVGO ) prevails 50 percent of Funds assets under management. 👉 Typically AMEX:XLK holdings are Growth investing stocks. The second one ETF is The Energy Select Sector SPDR Fund, AMEX:XLE . 👉 AMEX:XLE seeks to provide investment results that provide an effective representation of the energy sector of the S&P 500 Index SP:SPX . 👉 AMEX:XLE seeks to provide precise exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries. 👉 AMEX:XLE allows investors to take strategic or tactical positions at a more targeted level than traditional style based investing. 👉 AMEX:XLE is a place where stocks of American World-known Oil companies like Exxon Mobil Corp. NYSE:XOM and Chevron Corp. NYSE:CVX , like EOG Resources Corp. NYSE:EOG and ConocoPhillips NYSE:COP , like Valero Energy Corp. NYSE:VLO and Phillips 66 NYSE:PSX meet each other. 👉 Weight of Top 3 holdings in AMEX:XLE (Exxon Mobil Corp. NYSE:XOM , Chevron Corp. NYSE:CVX and EOG Resources Corp. NYSE:EOG ) prevails 45 percent of Funds assets under management. 👉 Typically AMEX:XLE holdings are Value investing stocks. The main graph represents different stock market stages of work 🔁 Early 2000s, or post Dot-com Bubble stage, that can be characterized as Energy Superiority Era. There were no solid Quantitative Easing and Money printing. U.S. Treasury Bond Interest rates TVC:TNX , TVC:TYX as well as U.S. Federal Funds Rate ECONOMICS:USINTR were huge like nowadays. Crude oil prices TVC:UKOIL , TVC:USOIL jumped as much as $150 per barrel. The ratio between AMEX:XLK and AMEX:XLE funds collapsed more than in 10 times over this stage. 🔁 Late 2000s to early 2010s, or post Housing Bubble stage, that can be characterized as a Beginning of Quantitative Easing and Money printing. U.S. Treasury Bond Interest rates TVC:TNX , TVC:TYX as well as U.S. Federal Funds Rate ECONOMICS:USINTR turned lower. Bitcoin born. The ratio between AMEX:XLK and AMEX:XLE funds hit the bottom. 🔁 Late 2010s to early 2020s, or post Brexit stage, that can be characterized as a Continuation of Quantitative Easing and Money printing. U.S. Treasury Bond Interest rates TVC:TNX , TVC:TYX as well as U.S. Federal Funds Rate ECONOMICS:USINTR turned to Zero or so. Crude oil turned to Negative prices in April 2020 while Bitcoin hit almost $70,000 per coin in 2021. Ben Bernanke (14th Chairman of the Federal Reserve In office since Feb 1, 2006 until Jan 31, 2014) was awarded the 2022 Nobel Memorial Prize in Economic Sciences, jointly with Douglas Diamond and Philip H. Dybvig, "for research on banks and financial crises", "for bank failure research" and more specifically for his analysis of the Great Depression. The ratio between AMEX:XLK and AMEX:XLE funds becomes great and respectively with monetary stimulus hit the all time high. 🔁 Early 2020s, or post Covid-19 Bubble stage, that specifically repeats early 2000s Energy Superiority Era. There is no again Quantitative Easing and Money printing. U.S. Treasury Bond Interest rates TVC:TNX , TVC:TYX as well as U.S. Federal Funds Rate ECONOMICS:USINTR are huge nowadays like many years ago. Commodities prices like Wheat CBOT:ZW1! , Cocoa ICEUS:CC1! , Coffee ICEUS:KC1! , Crude oil prices TVC:UKOIL , TVC:USOIL jump again to historical highs. The ratio between AMEX:XLK and AMEX:XLE funds is fading to moderate levels that can be seen as 200-Month simple moving average. 💡 In a conclusion.. I wonder, how the history repeats itself. This is all because markets are cyclical, and lessons of history always still remain unlearned. 💡 Author thanks PineCoders TradingView Community, especially to @disster PineCoder for its excellent and simple script Quantitative Easing Dates . Based on this script, Easing Dates are highlighted at the graph.
AMEX:XLKEducation
by Pandorra
Technology to Energy RatioEverything is cyclical. Every asset has its own cycle eventually in its own time. From Crypto to Real estate and Technology. I crossed compared the Energy sector to the Technology Sector. XLE/QQQ Then overlaid the Technology Sector to the Energy Sector QQQ/XLE As you can see there is many clues where one will always outperform the other. You just have to hold these assets where one is gaining vs the other. One asset will suck the liquidity of the other and visa versa until one completes the cycle then it repeats Hard assets are primed for outperformance. Happy Investing
AMEX:XLE
by AxeCapp
9
Looming Threats to Food and Energy SecurityThe global food and energy markets face growing uncertainty and volatility in the coming years due to converging factors that could lead to supply shortages, price spikes, and potential shocks. One concern is the impact of declining sunspot cycles on the climate. Scientists predict that a grand solar minimum could occur in the coming decades, causing global cooling and disruptive weather patterns, negatively affecting grain production in key agricultural. With grain supplies tightened, any further demand increases would send prices a lot higher. Global grain consumption has grown steadily, increasing by over 2% in the last 25 years. Rising disposable incomes in developing countries have enabled consumers to add more protein foods like meat and dairy to their diets. However, this dietary shift puts pressure on grains, since over 8 pounds of grain is needed to produce just 1 pound of beef. Hence, increased meat consumption indirectly leads to higher demand for grains. The ongoing war in Ukraine has severely impacted global grain markets, compounding the risks. Combined, Russia and Ukraine account for nearly 25-30% of worldwide wheat exports. With both countries blocking or threatening to destroy grain shipments, the conflict poses a huge threat to food security especially in import-dependent regions like North Africa and the Middle East. Export restrictions like India's recent rice export ban to protect domestic food security are also tightening global grains trade. As supplies dwindle, agricultural commodities become more vulnerable to price shocks. These supply uncertainties make soft commodities like cocoa, coffee, and sugar especially at risk of price spikes in coming years. Prolonged droughts related to climate cycles like La Niña and El Niño could severely reduce yields of these crops grown in tropical regions of Southeast Asia, Africa, and South America. For instance, a drought in West Africa's prime cocoa-growing areas could significantly impact production. Cocoa prices are already trading near 6-year highs in anticipation of shortages. If drought hits key coffee-growing regions of Vietnam and Brazil, substantial price increases could follow. Similar severe drought potential exists in the U.S. Midwest this summer. Lack of rainfall and moisture could cause severe yield reductions in America's corn and soybean belts. Since the U.S. is the world's largest corn and soybean exporter, this would cause severe upward price pressures globally. The rise in agricultural commodities ETF Invesco DBA likely reflects investor concerns about impending supply shortages across farming sectors, and its price might be leading the spot price of agricultural commodities. Fertilizer prices also contribute to food market uncertainty. In 2021-2022 fertilizer prices skyrocketed due to energy costs rising, directly raising the cost of food production. When fertilizer prices surge, it puts immense pressure on farmers' costs to grow crops and indirectly influences food prices. However, falling fertilizer prices do not necessarily translate into lower food costs for consumers. Fertilizer prices have dropped substantially over the last year, without that meaning everything is fine with fertilizer production. Dropping fertilizer prices could actually indicate a slowdown in agriculture, as, lower demand for fertilizers could mean fewer farmers are investing in maximizing crop yields. In that case, food production may decline leading to higher prices due to supply and demand fundamentals. At the same time, if other farm expenses like machinery, seeds, or labor rise due to factors like high energy costs, overall production costs could still increase even as fertilizer prices decline. The energy markets face a similar mix of uncertainty and volatility ahead. Despite substantial declines in prices, the energy sector ETF XLE has held up well, suggesting investors anticipate a rebound in oil and natural gas. Fundamentally, both commodities could trade a lot higher in the long term, however in the medium term I believe that oil is poised to drop further to the $55-60 area before tightening supplies lead to much higher prices. Essentially what’s missing is a capitulation to flush bullish sentiment, and then lead to much higher prices. At the moment the market has found a balance between a weakening global economy and OPEC+ supply cuts. A key uncertainty is China's massive oil stockpiling in recent years, now totaling nearly 1 billion barrels. If oil exceeds $80-85 per barrel, China could temper price rallies by releasing some of these reserves, as it did in 2021. With China's economy in turmoil, further reserve releases may be needed to stimulate growth, but it’s unclear whether its economy will be able to come back easily. Weak demand from China is already an issue for the oil market, and releases from the Chinese SPR could restrain oil prices over the next year. However, on the bullish side, the world remains heavily dependent on fossil fuels lacking viable large-scale alternatives, even as ESG trends continue. OPEC's dwindling spare production capacity raises risks of undersupply. Even an economic recession may only briefly dampen oil prices before supply cuts by major producers again tighten markets. Ultimately, sustained high energy prices will restrain broader economic growth by reducing demand across sectors. The outlook for food and energy markets remains uncertain, with significant risks of continued volatility over the next few years. Multiple converging factors point to potential supply shortages and price spikes across agricultural commodities and fossil fuels. While prices may fluctuate in the short-term (6-12 months), the medium-term trajectory appears to be toward tighter supplies and higher costs for food and energy (2-5 years). To close on a more positive note, I believe that food and energy prices will see significant deflation as extreme technological progress pushes prices down in the long term (5+ years).
TVC:USOILEducation
by BitcoinMacro
1
Make Exxon Great Again. As Here's A Hundred Fold OpportunityElectric vehicles are growing so fast that Exxon Mobil is preparing for a future when "customers don’t need that gasoline". Exxon Mobil Corp., which operates one of the world’s biggest oil-refining networks, is trying to be more responsive to changing consumer demands as the energy transition gathers pace. The changes it’s considering include potentially replacing some gasoline production with chemicals. The oil giant has long pursued a strategy of upgrading refineries to expand production and make higher-value products from crude oil such as lubricants and plastic feedstock. But it now sees those projects potentially helping the company to move away from traditional fuels, demand for which is likely to wane in coming decades. The strategy, discussed in August 2023 by executives at a presentation to investors and media, shows how even Exxon, one of the leading proponents of fossil fuels, is being forced to reckon with a future in which electric vehicles significantly eat into gasoline consumption. Exxon has already reduced production of fuel oil and high-sulfur petroleum at refineries in Singapore and the UK. Over time, it’s open to cutting output of gasoline, the focus of the company’s refining business since Henry Ford introduced the Model T nearly 100 years ago. The goal is to produce more chemicals, found in everything from paint to plastic, for which there are few low-carbon alternatives. "We’re planning on modifying some of that yield from gasoline to distillate and chemicals feed," Jack Williams, Exxon senior vice president, said earlier this year at the company’s office in Spring, Texas. "We’ve got projects that we know we would do to take those steps." Exxon gets most of its earnings from oil and natural gas production but refining has always been in its corporate DNA, right back to its original incarnation as part of John D. Rockefeller’s Standard Oil, which was established in the 19th century. Refining allows Exxon to earn money right along the fossil fuel supply chain, from the wellhead to the gas tank. But with traditional fuels such as gasoline under threat from EVs, refineries worldwide are being forced to adapt quickly. Some European plants shut down during the pandemic, while others in the US switched to biodiesel. Exxon wants to take a more nuanced approach by upgrading facilities to switch in and out of products depending on demand. To give an example, an Exxon refinery in Singapore used to produce fuel oil that sold for $10 per barrel below the price of Brent crude, but after a recent upgrade, the facility produces lubricant base stocks that sell for $50 above Brent. Exxon has upgraded and added to its refineries at Fawley in the UK and Beaumont in Texas to produce more diesel, which is used for heavy-duty transportation and is less vulnerable to competition from electric vehicles. "You just have more variables now due to the energy transition," said Jay Saunders, a natural resources fund managers at Jennison Associates, which has $186 billion under management. "Having a high-quality refining asset with flexibility will be very important." Exxon’s refining and chemicals footprint is at least double that of its Big Oil competitors, potentially making it more vulnerable to a speedy energy transition, and especially the growth of electric vehicles. But executives believe the potential for reconfigurations is far greater than that of its peers, providing an opportunity to profit in a low-carbon future. "This really allows us to pivot as demand evolves," said Karen McKee, President of Exxon’s Product Solutions division. Biodiesel is particularly attractive to Exxon because reconfiguring its existing refineries costs about half as much as building a new plant, said Neil Hansen, senior vice president of product solutions. Demand for biodiesel, which is manufactured from vegetable oil or recycled restaurant grease, is expected to quadruple to 9 million barrels a day by 2050, he said. Exxon is halfway through an eight-year plan to overhaul its fuels and chemicals division, which also involves cutting costs, improving operational performance and selling assets that don’t make the grade. Exxon will operate just 13 refineries worldwide by the end of 2023 after selling five in the past four years to focus on the biggest and lowest-cost operations. Chemicals will be key to the strategy’s success. Exxon sees demand growth for its high-performance chemicals at about 7% a year, contrasting sharply with gasoline, which is expected to peak globally by the end of the decade. To keep up with this demand, Exxon plans to build a new dedicated chemical plant every four to seven years, Williams said. The company’s refineries provide an additional means to make chemicals, but they will focus on responding to consumer preference rather than making a big bet on any particular product, Williams said. "We’re not going to do it while the demand is still there," he said. "We’re going to it at a time when the demand trends are clear and customers don’t need that gasoline." At the same time technical picture in Exxon stocks (dividends adjusted) illustrates Exxon got a huge support of 30-years SMA, and right here is a key Multiyear breakout. Further a hundred fold growth is right there to come. Make Exxon Great Again. #MEGA
NYSE:XOMLong
by Pandorra
XLE - true breakout or fakeout?Oil has been ripping lately and trying to establish a new consolidation range. Keep in mind this rally in energy has occurred as the DXY has had 9 weeks of consecutive upside. The energy sector has been a bullish piece of the market and is at a critical support level. If this breakout in XLE is to hold we could see some significant upside. A weekly & daily breakout has been confirmed but when you zoom out to the monthly chart this could be signalling a failed Double top reversal. Seeing how XLE closes the monthly candle will be telling for the market as oil has been the main increase in the CPI and inflation expectations.
AMEX:XLE
by Trading-Capital
$OXY - Rising Trend Channel🔹Breakout resistance at 65.90, indicating a potential further rise, and potential support at 65.90 in case of NEGATIVE reactions. 🔹POSITIVE volume balance indicates higher volume on rising days. 🔹The RSI curve indicates a positive trend, indicating a rising trend. 🔹Technically POSITIVE for the short term. Chart Pattern: ◦ DT: Double Top | BEARISH | 🔴 ◦ DB: Double Bottom | BULLISH | 🟢 ◦ HNS: Head & Shoulder | BEARISH | 🔴 ◦ REC: Rectangle | 🔵 ◦ iHNS: inverse head & Shoulder | BULLISH | 🟢 Verify it first and believe later. WavePoint ❤️
NYSE:OXYLong
by wavepoint99
OIL STOCKS leading CRUDE OILWhat do you mean by a spread? A spread is a difference between two similar markets, in this case oil stocks and oil service companies versus the basic commodity that those oil companies trade in, which is crude oil. There is a substantial trade set up at the moment that presents large returns with a reasonable amount of risk. Shorting Energy Stocks using the $XLE ETF and going long oil with the $USO ETF. In the last two instances, it was $USO that was leading higher without $XLE to support the advance, and $USO collapsed to close the spread. See chart enclosed above. Why does this spread exist? We can point to political promises to "end the use of oil" that forced investors to reconsider the long term valuations of oil stocks. Investors don't typically "own oil" through oil futures, rather they own "oil in the ground" by way of oil companies. Risk $5-$10 in crude oil and 5%-10% in $XLE roughly. If one market moves more than 5% then we can look to increase the position and tighten the stops to break-even. There is no specific 'catalyst' to drive this pair back together at the moment. If the economy opens back up globally, then oil demand estimates will rise and cause people to buy oil futures. Opening up could also drive energy stocks higher too due to very high margins currently in the processing of crude oil into their refined products. The only risk in life is taking no risks. Nothing is without risk. Holding cash leaves you to be exposed to inflation and the loss in purchasing power. The rest of the disclaimers are standard legal ones. I have no positions in this trade yet, but will be considering them. A good way to manage risk is to use options in the form of spreads on both sides of this trade to define a maximum amount of risk in advance. Buying a call spread on $USO and buying a put spread on $XLE would serve to manage risk intelligently. The duration of this trade should be 3 months at maximum.
AMEX:USOShort
by timwest
11
$CVX - Falling Trend Channel [MID-TERM]🔹Rectangle Formation produced a POSITIVE signal at a breakout resistance of 160. 🔹Marginally broken up through resistance at 164, next resistance at 173. 🔹RSI curve indicates a rising trend, indicating an early indication of a possible upward trend reversal for the price. 🔹Technically POSITIVE for the medium long term. Chart Pattern: ◦ DT: Double Top | BEARISH | 🔴 ◦ DB: Double Bottom | BULLISH | 🟢 ◦ HNS: Head & Shoulder | BEARISH | 🔴 ◦ REC: Rectangle | 🔵 ◦ iHNS: inverse head & Shoulder | BULLISH | 🟢 Verify it first and believe later. WavePoint ❤️
NYSE:CVXLong
by wavepoint99
$XLE Ascending Triangle PatternAMEX:XLE Ascending Triangle Pattern, waiting for a breakout. Key Elements: Rising Support Line: This trendline connects the higher lows. It indicates that buyers are stepping in at higher prices, suggesting increasing demand and potential accumulation. Slightly Sloping Resistance Line: This trendline connects the roughly equal highs, forming the upper boundary of the triangle. It represents a level where sellers are currently entering the market. Interpretation: The bullish triangle pattern suggests that despite the temporary resistance encountered at the horizontal trendline, buyers are gradually becoming more dominant. As the price gets squeezed into the apex of the triangle, there's a diminishing range between the highs and lows. This compression often signifies a potential breakout to the upside. Potential Breakout: Traders closely watch the pattern for a breakout. A breakout occurs when the price moves decisively above the horizontal resistance line. This is often accompanied by an increase in trading volume, indicating a surge in buying interest. The expected price target after a bullish triangle breakout can be estimated by measuring the height of the triangle at its widest point and adding it to the breakout price. Confirmation: To confirm the validity of the bullish triangle pattern, traders often look for an increase in volume during the breakout, price movement above the resistance line, and ideally, a retest of the upper trendline as new support.
AMEX:XLE
by AlgoTradeAlert
Still bullish on Crude & OXYIm going to try and post this a THIRD time now, as you can see from the first post on June 26th & June 28th. Apparently you cant utilize the Twitter post feature on charts because its solicitation or advertisement, even though im just using the timestamps to show I actually called it publicly like I am stating here. ========================================================== "Ive been looking at AMEX:XLE and NYMEX:CL1! lately and becoming more bullish for multiple reasons, specifically on NYSE:OXY OPEC supply cuts and Geopolitical tensions with BRICS nations could cause supply uncertainty The US Strategic Petroleum Reserve's have been drained Tech exhaustion is setting in and I believe buyers will rotate into Energy Trading well after breaking $70/bbl WTI 50DMA is $73.45 CTA flows are skewed to the upside OXY 52w low 55.51 - 52w high 77.13 (todays open - 56.15) price-to-sales ratio in 2016 was 5.5 and is currently 1.54 now Berkshire keeps buying more and now owns 24.97% of OXY So my thesis is a mixture of macro, fundamental and technical indications. The risk-to-reward ratio was there for me so I went long at 1030am on the pullback 6/26/23 and add more on 6/27/23 on the big pullback. XLE was the leading sector by a mile today. It needs to clear 58 and 58.75 for a continuation higher. The chart below illustrates all the timed purchases by Birkshire(Warren Buffet) and the amount of money in each order. As you can see, he buys around the same exact levels for the past year." ========================================================== NYSE:OXY is currently sitting at 62.66, up roughly 11.6% since my original post 28days ago. NYMEX:CL1! made a high of 79.28 today, up roughly 15.38% since my original post 28 days ago. I believe it will be a slow grind from here to 82, but that break upwards needs to happen for continuation. I maintain my thesis on Crude and the rising tension in the GeoPolitical climate and how it will affect its price. The Saudis maintain their resolve to lessen production in accordance with OPEC. I have theories relating to this one on a potential good trading setup which I will post later. That is all for now.
NYSE:OXYLong
by d3f4ult
OXY breakdown is clearJust over 6 months ago, OXY was flagged to technically not do the expected rally as it broke down of the H&S shoulder. Many had bought in following the reported Berkshire's purchases of OXY , BUT technicals was telling of another type of scenario. Watching the breakdown was rather painful as it stretched over the last 6 months, with a recovery attempt that failed the shoulder line the second time, as if not clear enough. Finally, this week closed below the channel trendline (adjusted from previous analyses). Furthermore, this is the 52 week second lowest weekly close... good enough to tell that it will be the 52 week lowest close soon. Technicals are bearish, not very but clearly. Therefore, more downside is expected up till October and looking at a target of 50. The bearish marubozu may be indicating the rather strong downward momentum too. Point here is that it was clear and heads up given 6 months earlier. Now, we take delivery. Also note that the USD appears to be strengthening (a lot?) and this can push the breakdown further and faster. The overall equity markets are overbought, and if it is time for a retracement, then OXY can be affected further. Heads up... again.
NYSE:OXYShort
by Auguraltrader
Can XNGUSD short squeeze?XNGUSD on the weekly chart showing two years of price action with weekly candles shows the rise in 2021 into spring 2022 then printing a head and shoulders pattern and the reversal to deep into the support/demand zone. The volume profile shows the majority of the trading during this time period to have been between $3.75 and $ 8.50. It would seem likely that there are a sizeable amount of short sellers holding positions with unrealized profits of 50% to as much as 300%. This past week had the best buying volume in six months and provides bulls with optimism If natural gas can gain some momentum and put in green candles with a decent price range for a couple of weeks in a row, the combination of new buyers with new interest and short sellers liquidating and buying to cover their unrealized gains might ignite a bit of a rally for natural gas. I will keep natural gas on watch. I will keep in mind that a breakout without a corresponding volume the response could be a fakeout. A stop loss would be $1.95 below the support zone while the final target would be $4.75 below the POC line. Interval take profits would be 10% of the forex lots every time the price rises by $0.50 for risk management and good profit taking while underway.
FXOPEN:XNGUSDLong
by AwesomeAvani
ERX Energy is backERX is a leveraged ETF tracking the energy sector. On the 4H chart it has been in a downtrend since mid-March. IT dropped to the bottom of the high volume area on the long term profile as well as the lowermost VWAP band. Firday May 12th marked the reversal with buying volume replacing selling volume and then a significant rise in price in the past week. On the AI moving moving average indicator, the optimized shorter Hull moving average (red line) has crossed over the longer EMA moving average ( blue line) as has the price. I conclude the energy sector is heating up. My new idea on BOIL supports this. I will take trades with energy in mind and review big oil stocks and natural gas stocks as well as pipeline and oilfield services stocks.
NYSE:BOHLong
by AwesomeAvani