Trade Alert – Equity And ETF Models
This morning we bought back into the energy sector. As I noted on Monday, the sector is now markedly oversold on a relative and absolute basis. Further, XLE and the underlying stocks are turning, or about to turn, to a buy signal on our money flow indicators and from low levels. We are adding very small starter positions currently, as momentum remains weak in the sector. However, if we begin to see a rotation, we will add further to the positions.
Equity Model
- Initiate a 1% portfolio position in both Valero Energy (VLO) and Exxon Mobil (XOM)
ETF Model
- Buy 2% of the total portfolio size into the iShares Energy ETF (XLE)
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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