“You even now have offer progress that’s overhanging the marketplace, and the OPEC tailwind is remaining overshadowed by that,” David Seaburg, head of fairness sales trading at Cowen and Co., reported Friday on CNBC’s “Electricity Lunch,” referring to the tug of war amongst OPEC creation cuts and expanding U.S. offer.
“On the [trading] desk, we’re looking at nothing but sellers in all these names, and in particular the winners,” he added. “I consider even the bulls are capitulating right here.”
With so considerably bearishness in the marketplace, however, we’re “having closer to a bottom,” Seaburg reported.
Looking at the XLE, which shut Friday trading at $67.80, the trader commented that “$sixty five is the ‘line in the sand’ exactly where you close your eyes and purchase it. I’d start out buying absent at these [latest] degrees and then get additional intense if we see additional draw back.”
Larry McDonald, of ACG analytics, is also bullish on vitality stocks—but for good reasons that have additional to do with Washington, D.C. than Cushing, Oklahoma.
He reported Friday on “Electricity Lunch” that numerous vitality businesses pay substantial tax costs, which indicates that “as the notion of tax reform arrives again in the future few of months, we could see a good deal of upside in the XLE.”
“Now’s the time you want to be leaning into some of these names,” McDonald reported.