Increasing Numbers Of Investors Are Betting On An Energy Rebound

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, today focusing on the world’s largest energy ETF, which has seen a big bounce lately and is beginning to rake in new assets as a result.

The Energy Select Sector SPDR Fund (NYSE:XLE) has turned in an impressive winning streak in the past three trading sessions, including today, after dipping on heavy volume earlier this week to multi-month lows.

The fund, for the time being, is above its 200 day MA once more, but suffered under that level for eight trading sessions prior before today. Crude Oil prices, which have been languishing on the whole, are certainly a factor here. Crude has spiked notably in the past few sessions, and XLE has performed nearly in lockstep.

XLE has pulled in about $580 million year-to-date in terms of net inflows, and we have also seen some interesting April 80 call activity this week (the fund is currently trading with a $70 handle).

More than 45,000 April 80 calls have traded (the options were only valued at 4 cents per contract at the time), and with a few weeks left until expiration, someone seems to be speculating on additional near term upside in this sector (and perhaps Crude Oil prices as well).

The Energy Select Sector SPDR Fund (NYSE:XLE) was trading at $70.62 per share on Thursday morning, up $0.46 (+0.66%). Year-to-date, XLE has declined -6.24%, versus a 5.74% rise in the benchmark S&P 500 index during the same period.

XLE currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #10 of 38 ETFs in the Energy Equities ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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