After a long 5-year bear market, the forgotten energy sector of the S&P could be coming back to life, on the backs of a strong market that is beginning to price in the Fed's "Not QE" and inflation expectations - see COW, WOOD, NIB.
Pretty much nobody is expecting inflation even as the core CPI is starting to trend up.
This three white soldiers candlestick pattern could mark the bottom of the energy sector and the end of deflation. XOM is not a bad investment at 5% dividend and a lot of upside potential. They also invest in renewables. VLO also looks good, though that is a bit more extended.
I wish I was smart enough to hold onto my position from lower, but I was trying to trade around and get lower prices.
I would go long XOM, VLO, CNQ on any pullback, and keep a core holding for at least the next 6 months and possibly forever if inflation returns.
Pretty much nobody is expecting inflation even as the core CPI is starting to trend up.
This three white soldiers candlestick pattern could mark the bottom of the energy sector and the end of deflation. XOM is not a bad investment at 5% dividend and a lot of upside potential. They also invest in renewables. VLO also looks good, though that is a bit more extended.
I wish I was smart enough to hold onto my position from lower, but I was trying to trade around and get lower prices.
I would go long XOM, VLO, CNQ on any pullback, and keep a core holding for at least the next 6 months and possibly forever if inflation returns.