The Wall Street Journal reports that oil dipped below $60 a barrel today on signs of a growing petroleum inventory. Crude for November delivery went to $59.65 a barrel in electronic trading by midday in Europe. Oil prices have dropped more than 23% since mid-July when it reached $78.40.
Energy Select SPDR (XLE) is 5% below its 200-day moving average and 14% off the high in April. The top three stock holdings for this exchange traded fund are ExxonMobil (XOM), Chevron (CVX) and ConocoPhillips (COP) and make up 41% of the ETF. If oil recovers, then the time to buy is when it goes above the 200-day moving average.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.