The power line rotates.
The XLE Energy ETF has once again outperformed the S&P 500’s 4% decline in global oil demand. When the team meets on Monday, the outcome decision from OPEC + could be the next big move up or down for the sector.
Craig Johnson, chief marketing officer at Piper Sandler, remains a force to be reckoned with.
He told CNBC’s “Trading Nation” on Friday: “Obviously, any such activity could be as high as $ 65, and you would see a higher fraction.” When you look at that XLE chart, you have done a pretty high level over the years.
XLE ETF closed at $ 53.84 on Friday. The transition to $ 65 is up 21%.
Johnson said that although many portfolio managers tend to underestimate power companies, they are making a strong bet on the local world and the technical position of the sector.
“These portfolio managers will not be able to keep this place for long,” he said. I think you should go ahead with the activity for the merchants out there today.
Traders are proposing to buy Deven Energy, Range Resources, EOG Resources and ion Natural Resources.
He added: “These are probably all stocks that should be bought, because they will definitely benefit in the future.”
In an interview with Trading Nation, Michael Bapis, Managing Director of Rocofeller Capital Via Consultants, also addressed the issue.
He said the energy sector was damaged during the outbreak. They will also benefit from the recovery.
In fact, many of these power companies have low cost and high profit margins, making them a strong performer, especially in the current growth and value-added environment.
As the winter approaches and the demand for natural gas and oil is high, the sector will also benefit, thus exacerbating the current supply and demand imbalance, Bapis said.
“I think the recovery is sustainable,” he said.