Starting with industry analysis and ending with something interesting (energy)

Market has gone up rapidly since 16th Oct 2014. And market carried most stock and ETFs with it. Most. But not all.

I looked at the standard ETFs that our Community of USA traders watch regularly. Here is a list of those ETFs using Sonar along with my observation.

From Sonar, we are left with only Oil/Energy related stocks to see if something interesting is going on there. Lets start with USO.

USO had nothing interesting. What about energy related stocks? Here we find something that may catch attention. Two such ETFs, XLE and XOP have stopped falling.

Lets have a look at XLE. What are top ten holdings in XLE?

Wouldn’t you expect those stocks held in XLE to follow Oil (USO)? Well, lets look at XLE through At A Glance.


If you analyze XOP through At A Glance, you will see striking similarity between XOP and XLE.

Doesn’t it seem to show that though oil (USO) is still falling, energy related ETFs have stopped falling? If so, how can you capitalize on that?

XLE and XOP both seem to be coming to a stage where both Longer Term Investors and Swing Traders may attempt an attractive Reward Risk Ratio trade. Not yet though. But one may keep an eye.

There is another Superior Profit Way.

When these ETFs start moving up fast, some stocks in those ETFs (or even if they are not in the ETFs but are related stocks) will certainly move faster. And in high likelihood, they are also recovering from Pendulum Low.

You may analyze the constituent stocks of XLE and also look up the same for XOP … and some related stocks. And once you find a stock to track, you may add it to your watchlist. And take the trade at the right time. Before non-Superior Profit Traders notice it. Entering using simple rules. Exiting when probably others are entering – at least partial position.

Trade profitably – there is no reason not to do so.

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