Comparing XLE to SPY
Running a twelve month chart on the XLE and I noticed that it is approaching a breakout price about $57. I compared it to the SPY as a relative comparison and discovered it is trading at a four percent performance discount to SPY.
From a three year perspective they are trading together, where in the past three years XLE traded with a performance premium.
Point is energy performs better in better economic times and while it may not be robust economic growth in the United States, some of the world is moving forward not buried in debt.
Sell a little SPY and buy an equal dollar amount of XLE and enjoy some excess performance.
From a three year perspective they are trading together, where in the past three years XLE traded with a performance premium.
Point is energy performs better in better economic times and while it may not be robust economic growth in the United States, some of the world is moving forward not buried in debt.
Sell a little SPY and buy an equal dollar amount of XLE and enjoy some excess performance.
Posted by Bradley Fluetsch at 9/29/2010 8:12 AM 
Categories: Speculation
Tags: profit XLE buy out energy SPY break SP500 sector
Categories: Speculation
Tags: profit XLE buy out energy SPY break SP500 sector
Comments