“In a note Monday, Miller Tabak managing director Matt Maley said the XLE is nearing a critical multiyear trend line that if broken could mean the energy sector ‘is getting quite close to a compelling decline,’” reports CNBC.
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
“In addition, some strategists noted, futures traders’ crude oil positions as expressed in commitment of trader data are at historic extremes, with their longest positions on record,” according to CNBC.
For more information on the energy sector, visit our energy category.