Go to the list of all blogs
Rick Pendergraft's Avatar
published in Blogs
Dec 22, 2020

Oil and Energy SPDRs Receive Bearish Signals

The oil industry and the various other energy industries associated with oil production have been on really nice rallies over the last two months. The gains seemed to be propelled by vaccine news and the hope that the world economy would get back on track sooner than thought.

The Energy Select Sector SPDR (XLE) gained 56% from its October low to its high a few weeks ago. The fund quickly shifted from oversold to overbought and it moved above its 52-week moving average during the rally. Unfortunately the weekly stochastic readings made a bearish crossover last week and appear as though they may be headed out of overbought territory—a possible bearish signal.

The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) experienced an even greater gain, rallying 66.9% from its October low to its high two weeks ago. The XOP also saw its oscillators move from oversold territory to overbought territory during the rally and it also moved above its 52-week moving average. In this case the fund hadn’t been above the moving average in over two years.

Like the XLE, the XOP saw its weekly stochastic indicators make a bearish crossover while in overbought territory. We see similar instances in June and January of this year and back in April 2019. In all three of these previous instances, the XOP dropped considerably in the months that followed. The same pattern can be seen on the XLE weekly chart.

I imagine if you went through the weekly charts of the stocks that are holdings in these funds you would see a number of them following the same pattern.

Looking at the Tickeron Screener, 24 of the 26 stocks in the XLE are rated as a “sell” on the Tickeron Scorecard with only one “buy” and one “hold” rating. In the XOP, 35 of 42 receive a scorecard rating of a “sell” while five are rated as a “buy” and two have “hold” ratings.

If we look at the fundamental and technical indicators for the two funds, the XLE has one negative and one positive indicator on the fundamental side. On the technical side it gets two positive indications, but five bearish ones. The XOP doesn’t have any positive indicators from the fundamentals and it has one negative. On the technical side it has two bullish signals and four bearish signals.

The Tickeron comparison between the two ETFs shows how each fund ranks against one another and against other funds. We also see that there have been a number of signals generated on the funds in recent weeks. 

Related Ticker: XLE

XLE's RSI Indicator peaks and leaves overbought zone

The 10-day RSI Oscillator for XLE moved out of overbought territory on September 15, 2023. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 instances where the indicator moved out of the overbought zone. In of the 39 cases the stock moved lower in the days that followed. This puts the odds of a move down at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on September 28, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on XLE as a result. In of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for XLE turned negative on September 20, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .

XLE moved below its 50-day moving average on October 03, 2023 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

XLE broke above its upper Bollinger Band on September 01, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XLE advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 288 cases where XLE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Fundamental Analysis (Ratings)

Fear & Greed

Notable companies

The most notable companies in this group are Exxon Mobil Corp (NYSE:XOM), Chevron Corp (NYSE:CVX), ConocoPhillips (NYSE:COP), Schlumberger Limited (NYSE:SLB), EOG Resources (NYSE:EOG), MARATHON PETROLEUM Corp (NYSE:MPC), Occidental Petroleum Corp (NYSE:OXY), Phillips 66 (NYSE:PSX), Pioneer Natural Resource Co (NYSE:PXD), Valero Energy Corp (NYSE:VLO).

Industry description

The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Energy Select Sector Index. In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes companies that have been identified as Energy companies by the GICS®, including securities of companies from the following industries: oil, gas and consumable fuels; and energy equipment and services. It is non-diversified.

Market Cap

The average market capitalization across the Energy Select Sector SPDR® ETF ETF is 85.54B. The market cap for tickers in the group ranges from 12.15B to 461.76B. XOM holds the highest valuation in this group at 461.76B. The lowest valued company is APA at 12.15B.

High and low price notable news

The average weekly price growth across all stocks in the Energy Select Sector SPDR® ETF ETF was -2%. For the same ETF, the average monthly price growth was -2%, and the average quarterly price growth was 6%. EQT experienced the highest price growth at 2%, while VLO experienced the biggest fall at -6%.

Volume

The average weekly volume growth across all stocks in the Energy Select Sector SPDR® ETF ETF was 9%. For the same stocks of the ETF, the average monthly volume growth was -0% and the average quarterly volume growth was 9%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 56
P/E Growth Rating: 64
Price Growth Rating: 39
SMR Rating: 36
Profit Risk Rating: 48
Seasonality Score: 19 (-100 ... +100)
Related Portfolios: ENERGY
View a ticker or compare two or three
Technical Analysis# Of IndicatorsAvg. Odds
   
   
Show details...
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

Category Energy

Profile
Fundamentals
Details
Category
Equity Energy
Address
One Lincoln Street Cph0326Boston
Phone
N/A
Web
www.spdrs.com
Interesting Tickers
1D
1W
1M
1Q
6M
1Y
5Y
1 Day
ETFs / NAMEPrice $Chg $Chg %
TWIO8.24-0.04
-0.48%
Trajan Wealth Income Opportunities ETF
FMAT43.33-0.25
-0.57%
Fidelity® MSCI Materials ETF
REET20.42-0.31
-1.50%
iShares Global REIT ETF
EGUS29.18-0.53
-1.79%
iShares ESG Aware MSCI USA Growth ETF
BWG7.19-0.24
-3.23%
BrandywineGLOBAL Global Income Opportunities Fund

XLE and

Correlation & Price change

A.I.dvisor indicates that over the last year, XLE has been closely correlated with FENY. These tickers have moved in lockstep 100% of the time. This A.I.-generated data suggests there is a high statistical probability that if XLE jumps, then FENY could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To XLE
1D Price
Change %
XLE100%
-0.07%
FENY - XLE
100%
Closely correlated
-0.04%
IYE - XLE
100%
Closely correlated
-0.17%
VDE - XLE
100%
Closely correlated
-0.10%
DRLL - XLE
98%
Closely correlated
-0.17%
IXC - XLE
98%
Closely correlated
-0.35%
More
Artificial intelligence (AI) and fintech have an inherent compatibility that has become clearer as each sector has matured, with recent growth and successes on their own accord bringing new ideas about how they can work together.AI can analyze information at far greater quantities (and far more quickly) than any human, making it a natural fit to help fintech firms streamline and automate processes that benefit customers and businesses alike. Fintech has brought a revolution of convenience to the finance world.
You’ve set up your bitcoin wallet and have acquired some bitcoins, and now you’re ready to use them – what’s next?But be VERY careful to double- or triple-check that the address is correct – crypto transactions are irreversible, and a typo almost certainly means permanently losing the bitcoins you were trying to send. One way to avoid potential slip-ups is to scan a QR code (when available) for the destination address.
Mainstream acceptance has come in fits and starts, with regulatory approval proving hard to come by for a variety of reasons – not least of which the ever-present risk of theft via hacking or other means, which pose an especially large obstacle to attracting investment from mainstream institutions. Because crypto holdings are only accessible via a specific private key, they are susceptible to loss – literally, if the key is written on a piece of paper or a physical hard drive, methods of offline ‘cold storage’ – or through hacks if held in an online wallet.Reuters reports that over $800 million in crypto assets were stolen in the first half of 2018, creating justifiable concern for both owners and mainstream financial institutions alike. Some type of insurance coverage would potentially mitigate the risks inherent to owning crypto assets – if insurers are willing to play ball.
Don't fall prey to common financial traps that can derail your financial planning efforts. In this article, we highlight four traps to keep in mind, including the importance of refinancing rather than consolidating student loans and credit card debt, prioritizing debt repayment over investments, limiting news consumption, and understanding the true costs of buying a home. Learn how AI tools from Tickeron can help investors make informed decisions and achieve their investment objectives.
Paper wallets are extremely useful tools – beyond being one of the most popular and secure cold storage methods, they make it simple to transfer coins between owners.You can access the funds on your paper wallet by “sweeping” (or importing) them to either a live wallet (like Trezor or Exodus) or an exchange service (like Coinbase). Most services allow you to import them directly from your wallet’s private key, but there are two key exceptions.
Get ready to revolutionize your investment strategy! Discover 3 cutting-edge ways to get fresh and innovative investment ideas, and say goodbye to relying on unreliable sources like CNBC. From utilizing advanced AI tools to sharing your portfolio with trusted friends, these methods are sure to boost your investment game. So, what are you waiting for? Read on to find out how you can start generating new ideas today!
You’re a trader, not an investor. It’s important that you understand the difference before choosing an actual trading style. Traders perform their magic over shorter periods of time, sometimes within minutes or hours. Investors are more passive. They purchase equities and hold them for months or years, relying on a long-term return. Traders evaluate buys and sells based on technical analysis...
Looking to invest your money in the stock market? While leaving your money there for a few years can yield a ten percent return, real traders know that actively trading and using derivatives is the way to make a significant profit while minimizing risk. Derivatives are contracts between two parties that are based on the price of a financial asset, such as a stock or bond. The value of the...
Zoom (ZOM), the video conferencing giant, registered a three-day uptrend of +1.84%. Our proprietary AI trading bot identified an intraday gain of 6.75%, attributing it to robust market sentiment and promising growth indicators. This uptrend signals a potentially strong position for investors and stakeholders. A deeper analysis could provide crucial insights into the future performance of ZOM. Stay updated for further analytics and forecast from our AI tools.
The Swing Trader: Volatility Balanced Strategy (TA) AI trading robot has emerged as a remarkable performer. Operating within our robot factory, this trading algorithm has recently demonstrated its prowess by generating a notable gain of 3.74% while trading ZIM (ZIM Integrated Shipping Services Ltd) over the previous week. This article aims to delve into the technical analysis surrounding ZIM's recent performance and the potential for an impending price rebound.
AI trading robot, the Swing trader: Volatility Balanced Strategy (TA), has stood out as a performer in our robot factory. In the previous week, it achieved an impressive 3.78% gain while trading AFRM (Affirm Holdings Inc.), a notable stock in the market. In this article, we will delve into the technical analysis of AFRM's recent movements and explore the implications of its earnings results.
Among them, the Swing Trader: Volatility Balanced Strategy (TA) stands out as a top-performing AI trading robot. In the previous week, this robot demonstrated its prowess by generating an impressive 3.60% gain while trading NET (stock ticker symbol) – a remarkable achievement. This article delves into the reasons behind the success of Swing Trader, focusing on the positive Moving Average Convergence Divergence (MACD) indicator and the recent earning results of NET.
The Swing Trader: Volatility Balanced Strategy (TA), has caught our attention for its impressive performance. Last week, it generated a remarkable gain of 3.56% while trading RIOT, a prominent stock. In this article, we will delve into the analysis of RIOT's recent bearish trend and examine the company's earnings results, which exceeded expectations.
The Swing Trader: Volatility Balanced Strategy (TA) AI trading robot has emerged as a top performer in our robot factory, demonstrating exceptional performance and generating significant gains. In the previous week, this intelligent trading bot achieved a remarkable 3.56% gain while trading WKHS (Workhorse Group Inc.) - an achievement worth noting. Coupled with positive market indicators, WKHS presents an intriguing opportunity for potential future growth.
AI trading robot, known as "Swing trader: Volatility Balanced Strategy (TA)," has caught the attention of traders and investors alike. In the previous week, this AI robot, developed in our esteemed robot factory, demonstrated impressive performance by generating a gain of 3.51% while trading DKNG. This article will delve into the recent trading activity, the significance of the stock's upward trend, and analyze the latest earnings results of DKNG.
One such tool that has garnered attention is the AI trading robot known as Swing trader: Volatility Balanced Strategy (TA). This robot, developed in our esteemed factory, recently demonstrated its prowess by generating a notable 3.02% gain while trading CHPT (ChargePoint Holdings) over the previous week. While CHPT experienced a downward trend, the robot's performance and insightful analysis provide valuable insights for traders and investors alike.
Explore the financial battleground between JNJ, a medium-volatility swing trading choice, and MRK, a popular stock for trend trading. Delving into their current performances, JNJ shows a gain of 3.04% while MRK rises by 6.71%. The analysis combines Technical Analysis (TA) & Fundamental Analysis (FA) for precise forecasting. Gain insights into market trends, financial stability, and future stock movement predictions for informed investment decisions.
Dive into a comparative analysis between the Market Neutral Strategy applied to CCL (yielding 15.39%) and the Swing Trading Strategy applied to MULN (yielding 19%). Both employ technical and fundamental analysis. Discover how the Motor Vehicles sector (+2.11% weekly) and Other Consumer Services (+3.75% weekly) affect these strategies. Earnings for CCL and MULN are expected on Sep 28 and May 31 respectively
Apple (AAPL) has entered a monthly bullish trend, and A.I.dvisor predicts that the stock will continue its upward trajectory. With a projected growth of 4% or more within the next month, AAPL investors may have reasons to be optimistic about its Uptrend continuation.
General Electric (GE) has entered a monthly bullish trend, signaling potential for an Uptrend continuation. With A.I.dvisor predicting a projected growth of 4% or more within the next month, GE investors may anticipate further positive momentum in the stock.