Hehehehe! Thanks Morgan!
Yeah Nick, Serge is definitely on my case now!
Anyway here's the story as I see it. Over 60% rise in three-four months for many energy stocks. At the first sign of potential problems many investors are selling out to protect their gains. So it's only a loss for someone who didn't get in over a month ago. There has been a 5-10% correction which includes a general stock sell-off following the news today that the US cost of imports is the highest since 1990 due to the cost of crude oil.
My view is that these energy stocks are now looking cheap. I sold off many of my positions and am now on the sidelines waiting for when I think the next upswing will start - as it certainly will, and quite soon. In fact, I suspect I saw a bottom tested today but it was not breached. Two more tests without breach and we are on up again.
I follow XLE VERY closely because it's a composite tracker stock of the energy market. What that does, most of energy is doing.
I should still point out that the S&P is now lower than at the year start. If you were invested in a regular S&P tracker you would have lost money this year.
If you were invested in XLE you would have made 50% this year (would have been 60% last week
True - energy will be very volatile but also very profitable. As long as you buy in just at the start of a rise and set a stop loss at the buy price so the most you can lose is your $10 trading fee you'll be pretty much OK.
So, right now I'm not doing much energy. I'm looking at railroads as they have a good future, though. Oh, and after Apple announcing the video iPod - I made a nice daytrading killing today