Energy Sector Torn Between Geopolitical Risk and Oversupply (ETF: XLE)

| About: Energy Select (XLE)

One day terrorists strike causing prices to rise and the next they’re quiet causing energy traders (the most callous and reckless futures trading pit on earth) to flit about like chickens with their heads chopped off.

Today is energy inventory day, and barring another terrorist attack, it’s usually a bad sign when prices decline sharply (as they did yesterday) on the day prior to that news. Clearly oversupply and geopolitical risks shake this market in both directions. Not having any exposure to the sector might be the greater risk.