XLE had a few overnight trades at 70 already. That doesn't mean much. It trades around the clock.sweetandsour wrote: ↑27 Sep 2022, 19:23I was thinking the exact same thing when it was in high 70s, got sidetracked, and then saw it go down 10 dollars. Surely it will bounce back above 70, maybe even 75, and I'll sell it, I've already decided. I don't want to wait for it to rise, which I think it will by the end of the year, and I don't care too much about the 4% dividend, which I think the record date was 9/20. I'll sell XLE now and use the funds for SPY at some point, 350 or lower. Or else day trade.
Edit: BTW, I read today that there was (is?) a very high "outflow" of XLE. I haven't yet learned if this is a good thing, bad thing, or no thing.
I don't know what "outflow" means. Are people selling more XLE than shareholders are selling the underlying stocks? That should stabilize itself quickly, due to arbitrage management.
My concern is that there is another large market sell-off coming soon. There is no such thing as a safe sector when that happens. "When the paddy wagon pulls up to the whorehouse, everybody goes -- even the piano player."
I'm going to have to give this some serious thought tomorrow. I should definitely put a stop loss on, and probably a limit order as well. Or maybe just bail and wait for earnings season to tell its story.
I suppose that oil prices will go up when Biden closes the spigot at SPR. XLE could surge.
Oil is trading under $90 right now. If it drops to $80 and Biden starts buying, that could stabilize our energy profits for a while. Maybe XLE won't fall much lower? I'm going to have to research and think some more.