Should energy sector ETFs see more waning momentum, which is exactly was seen Tuesday, the UltraShort Oil & Gas ProShares (NYSEArca: DUG) and the Direxion Daily Energy Bear 3X Shares (NYSEArca: ERY) could prove to be winning trades. ERY attempts to deliver three times the daily inverse performance of XLE’s underlying index while DUG is a double-leveraged inverse play on the Dow Jones U.S. Oil & Gas Index.
“Lee joins a growing number of strategists, including BGC Financial’s Senior Equity Derivatives Strategist Jared Woodard, in highlighting rising wages as a noteworthy headwind for consumer-oriented stocks,” according to Bloomberg.
Energy Select Sector SPDR ETF
