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XLE ETF: Crude Rally Points To Further Gains

Stuart Allsopp profile picture
Stuart Allsopp


  • Even after a more than doubling in the XLE over the past 12 months, the rise in oil prices suggests the bull market has much further to go.
  • The XLE appears to be tracing out an inverse head-and-shoulders reversal pattern relative to the SPX.
  • The surge in WTI suggests that the energy sector should be more than double its current share of the S&P 500 based on the long-term correlation.
  • The tendency for oil majors to benefit during periods of economic turmoil caused by renewable supply shortages adds to the benefits of holding the XLE.

Working Pumpjacks On Sunset

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The Energy Select Sector SPDR ETF (NYSEARCA:XLE) has risen 20% off of last month's lows, posting new highs in total return terms thanks in part to the strong contribution from its dividend yield. Even after a more than

This article was written by

Stuart Allsopp profile picture
I am a full-time investor and owner of Icon Economics - a macro research company focussed on providing contrarian investment ideas across FX, Equities, and Fixed Income based on Austrian economic theory. Formerly Head of Financial Markets at Fitch Solutions, I have 15 years of experience investing and analysing Asian and Global markets.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of XLE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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