COM - XLE: Market Misunderstanding Creates An Opening
2024-06-14 08:30:00 ET
Summary
- Energy sector investors have endured a disappointing two months.
- Bearish sentiments in crude oil futures have likely contributed to the weakness.
- OPEC+'s recent decision led to an initial selloff, but crude oil futures assess a bottoming signal.
- Fundamentals of the energy sector are structurally sound. I explain why in the article.
- With XLE getting increasingly close to a bottoming signal, I urge investors to capitalize on the market's misunderstanding.
Energy Sector's Two-Month Pullback
I last presented my update on the Energy Select Sector SPDR ETF ( XLE ) in October 2023. I articulated my bullish thesis on XLE that the intensified geopolitical tensions in the Middle East could lift the war premium. However, the extent of the conflict didn't spread into a more expansive theater of war, affecting the robustness of my initial optimism....
XLE: Market Misunderstanding Creates An Opening