Investors should be aware that XLE and its aforementioned rivals allocated hefty portions of their lineups to the largest oil companies, including Dow components Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) along with Schlumberger (NYSE: SLB), the largest oilfield services provider. In some cases Exxon Mobil and Chevron, the two largest U.S. oil companies, combine for up to a third of these ETFs’ weights.
Related: 4 Energy ETFs may be at Near-Term Tops
“The plan is to buy the XLE above $69 aiming higher into the $73 and $77 levels. The stop can initially be placed at the $66 level,” adds TradingFloor.com. “Fifth waves are tricky in the sense that they are often either short or long, sluggish or strong and explosive. We should have been able to rule out the short alternative, but it could still be a sluggish one. The main risk to this trade view, however, is a weak oil price and general stock market weakness which would most likely weigh on this ETF as well.”
Energy Select Sector SPDR
