For those seeking a hedge against further weakness in the energy sector, the ProShares Short Oil & Gas (NYSEArca: DDG) tries to reflect the inverse, or -100%, daily performance of the Dow Jones U.S. Oil & Gas Index.
The UltraShort Oil & Gas ProShares (NYSEArca: DUG) takes two times the inverse, or -200%, daily performance of the Dow Jones U.S. Oil & Gas Index. More aggressive traders can take a look at the Direxion Daily Energy Bear 3X Shares (NYSEArca: ERY), which reflects three times the inverse, or -300%, daily performance of the energy select sector index. Moreover, the recently launched Direxion Daily S&P Oil & Gas Exploration & Production Bear Shares (NYSEArca: DRIP) takes the -3x, or -300%, daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index.
Related: 32 Best ETFs to Track Crude Oil
On XLE’s weekly chart “XLE was able to hold on to the rising trend line despite the weakness in the sector. The bounce occurred right at the intersection of the rising trend line and the 50 week moving average. For now it is still within this ascending triangle. We’ll know soon if bulls have the conviction to push this back up and through the top of the triangle at $69 or whether it resolves lower and goes on to test the 2 and a half year downtrend line,” adds See It Market.
For more information on the Oil ETF market, visit our Oil category.
Energy Select Sector SPDR
