iShares S&P/TSX Capped Energy Index ETF (XEG.TO)

He is bullish on oil. There are now a whole bunch of opportunities coming in terms of pipelines.

(Top Pick Aug 15/12, Up 1.94%) Played it until it peaked. A seasonal trade. Oil sands stocks have similar seasonal characteristics to others. We are back into this period. He chose to play the US side but Canadian looks okay.

(A Top Pick. (BNN shows July 3/12 but our records indicate Aug 3/12.) Up 4.14%.) A basket of Cdn energy stocks. Spreads are narrowing now between Brent, West Texas and Cdn oil producers. Not as negative on the oil producers as he was a few months ago.

Oil service companies are leveraged to the upside. They benefit from increases in oil prices. He would be cautious of putting more money in here. Put new money in on a dip. It’s range trading. Buy below $15, but he would prefer a US ETF.

Chart shows this has a higher low. All that has to happen is for it to break out above the resistance of around $17. All of the components such as oil field services, oily producers, gassy producers and integrateds are ready to break out.

(Top Pick Mar 18’13, Down 4.91%) You want to pursue this in the latter half of the summer. Oil prices did not do well into May, their seasonal period. July starts the second period. Canadian side did not work and US side made a gain but underperformed. It was not a good play.

Market cap – weighted approach. Wait for a correction.

With or without the approval of Keystone? According to the IEA, the US will be the biggest producer by 2017. We just had the Exxon spill and there was the CP spill a couple of weeks ago. With all of this, why do you really want to buy oil and if you do, what oil are you going to buy? He is not hot on Canadian oil stocks at this time. (See Top Picks.)

Energy is still in favour. You may want to sell in May. It has broken out of a previous range and previous high. This dip is a buying opportunity. You have not missed the run. Jan to May is 10% gain but between March and May is 8% so you have a lot of run to go.

(A Top Pick Feb 23/12. Down 11.73%.) A seasonal play that just didn’t quite take. There are better names in this sector.

Seasonals are usually favorable on the oils but the stocks don’t seem to be moving so much with the prices of oil. This is because the energy sector contains so much Nat. Gas. There is some resistance in this sector at 16 and change. He would be fairly neutral on the sector. He plays it through broad market indexes.

Canadian oil producers are receiving about $50 million a day less than they should because of the discount to US oil prices and global prices. He has written Calls on some of his holdings to limit the risks.

HIE is the inverse of this. If you are bearish on energy stocks then HIE is the way to play it.

There are about 9 or 10 energy ETFs in Canada and he chose this one because it is the most marketable. Technicals turned positive on this last week. Stock is trading above the 20 day moving average and is already outperforming the market.

Energy has strong seasonality from end of January until May of each year. Right now we are not in that time. We are now getting a nice little base pattern. When it crosses the 20 day moving average and starts to outperform the market, that will be a signal to buy. If they say XL will go ahead, it will have a big impact on heavy oil stocks. Between March and May we should get more news on the Keystone pipeline.