- The Energy Select Sector SPDR ETF (NYSEARCA:XLE) is on the verge of its longest-ever winning streak following 10 straight days of gains, which ties a stretch ended in July 2006.
- Noting the gap between oil price appreciation and XLE price appreciation, Strategic Wealth Partners president Mark Tepper sees more room to run: "Oil is up 40%-50% Y/Y and it's up over 20% YTD, and we see an additional 10%-15% upside before the end of the year. Energy stocks haven't done quite as well. The XLE is up 9% this year and up 17% Y/Y."
- But Bear Traps Report editor Larry McDonald, another long-time energy bull, is starting to lighten his exposure to the sector, saying "the awareness level of the bull case is very, very well known right now."
- Most of the XLE’s components are enjoying triple-digit YTD gains, but overall fund returns have been held in check by a lagging performance at Exxon (NYSE:XOM) - down 2.1% so far in 2018 - which comprises 23.2% of the XLE’s value.
- Currently, U.S. WTI futures -0.1% at $71.38/bbl and Brent +0.3% at $79.59/bbl.
- Now read: Crude Oil At The Top End Of Its Range
Original article