Don VialouxOil Services Vaneck ETFOIHTOP PICKNov 28, 2017
This tends to move from around mid-December through until April. Technically, the stock is showing a nice base pattern already. If it moves above its pattern, it will be a classic reverse head and shoulders pattern. Thinks that $26.27 is the magic number, and a move above that will complete the pattern.
Exxon and Chevron make up 40% of this ETF, which saw put volumes at 1.5x its average daily volume with puts outnumbering calls 3-1 this past year. For the last two years, energy has outperformed. In 2023, the price of oil rises while oil stocks fall, which reverses the trend of the past two years.
If oil can sustain current levels, oil socks should be okay for 2023. In recent months, oil stocks like Exxon have held in there, recently touching new highs.
Even after the war ends, countries and companies will remain reluctant to buy Russian oil. So, this encourages new and expanded drilling in other parts of the world. SLB is the largest holding in this ETF.
Crude oil prices hit 2018 highs OIH is 45% YTD. It's a way of hedging your risk, because you're buying a basket of stocks. One stock within OIH can be overvalued, but not the entire OIH.
(A Top Pick Feb 15/18, Down 42%) He was looking for US oil. This ETF started under-performing mid-year and he got out. He is not rushing back into energy names except for a few very highly beat up names.
This will be tied to the energy commodity market, which is in the steepest price decline ever, he thinks. He would be careful as he does not know if we are at the lows for oil prices. The trend is too well defined to the downside right now. He would be careful trying to pick the bottom.
Most Canadians are very exposed to oil. This is an interesting spin because it is the oil service companies and not the producers. You can get broader exposure through others in Canada.
(Past Top Pick March 27, 2018, Up 7%) A direct oil play. The oil price has done better than expected, but it's frustrating to get the commodity call right, but the stocks don't rise accordingly.
(Past Top Pick, Feb.15, 2018, Up 4%) Oil did a lot better than he expected, but he's disappointed that this ETF hasn't reflected that lift. Energy stocks are still out of favour, because investors are buying FANG stocks instead.
An oil services ETF. 35% of this is Haliburton and Slumberger. With oil above $60, a lot of money is going back into the ground, more so in the U.S. than Canada. Valuations are low in the mid-20s.
At $60 plus for oil you get a lot of investment going back into the ground. It is trading at the low end of the historical range. It should get a bigger boost going forward.
This tends to move from around mid-December through until April. Technically, the stock is showing a nice base pattern already. If it moves above its pattern, it will be a classic reverse head and shoulders pattern. Thinks that $26.27 is the magic number, and a move above that will complete the pattern.