Monday, August 24, 2015

Energy Stocks Approaching Fair Value (XLE; XOP)

After a year of "It's too early", in various fonts and colors I'm going to have to find a different schtick.

Now fair value does not mean they can't drop from here, just that they aren't so grossly overvalued that the short side is the default trade.

WTI $38.65 down $1.80. This morning's multi-year low: $37.75.
XLE $61.79 down $1.71. This morning's multi-year low: $58.74.
XOP $34.59 down 79 cents. This morning's multi-year low: $33.29.

For the uninitiated FTFD is Buy The Fokken Dip.

From ZeroHedge:

Energy Sector Stocks Crash To 4-Year Low (As Credit Predicted)
The S&P Energy sector ETF - XLE - collapsed at the open to its lowest since October 2011... Of course, this should come as no surprise whatsover to those who watch credit...

Fool me thrice?