an tSionna 5.03.09 Energy Sector

Energy related stocks & ETFs were strong towards the end of last week as investors sniffed out the potential for rising energy prices as the global economy begins to recover. Above I have shown two energy ETFs. {Please note that I own these in risk appropriate client accounts}. The red circles show a couple of interesting things. The first is that both have made golden crosses and that both have penetrated their longer term downward sloping trend lines. I think energy and certain other commodity related areas will be sectors of outperformance going forward. Therefore I want my clients to have exposure in these sectors.

Please note that I am only telling you for information purposes what is my thinking for my clients who have the appropriate risk tolerance to invest in these sector funds. This is not a recommendation to the public. The casual reader of this blog should understand the risks of investing in energy companies and in ETFS in general. He or she should also consult their own investment advisers before investing in these funds and they should read each funds prospectus before doing so.

*Long IEZ, IXC and certain other energy related ETFs in client appropriate accounts.