On Monday 03 July I highlighted the Energy as the sector as a recovery opportunity.
Out the 11 SPDR sector, the XLE has been the best performer for the month.
Sector Performance For July (via Koyfin)
![](https://static.wixstatic.com/media/63fd96_06c0b473e096408fa6f94846e9fddb3b~mv2.png/v1/fill/w_980,h_506,al_c,q_90,usm_0.66_1.00_0.01,enc_auto/63fd96_06c0b473e096408fa6f94846e9fddb3b~mv2.png)
Initially, I discussed the potential underperformance in September 2022.
![](https://static.wixstatic.com/media/63fd96_b74766cf6d6d4d7a88aaf82e9fd3bcd7~mv2.png/v1/fill/w_980,h_553,al_c,q_90,usm_0.66_1.00_0.01,enc_auto/63fd96_b74766cf6d6d4d7a88aaf82e9fd3bcd7~mv2.png)
By the end of June 2023, Energy had underperformed the S&P 500 index by 23%
![](https://static.wixstatic.com/media/63fd96_d60329b037564a38bca657e76f732aa5~mv2.png/v1/fill/w_980,h_553,al_c,q_90,usm_0.66_1.00_0.01,enc_auto/63fd96_d60329b037564a38bca657e76f732aa5~mv2.png)
On 03 July, the following Energy ETFs were highlighted, with the trend lines and channels being a key factor. Also noted at the time was the oil price emerging from a consolidation phase.
![](https://static.wixstatic.com/media/63fd96_1dde3d33e6494702baa612e3c29dacac~mv2.jpeg/v1/fill/w_980,h_551,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/63fd96_1dde3d33e6494702baa612e3c29dacac~mv2.jpeg)
Energy ETF Performance
![](https://static.wixstatic.com/media/63fd96_59078fa183314f409e9a41e23c8f5012~mv2.jpeg/v1/fill/w_980,h_551,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/63fd96_59078fa183314f409e9a41e23c8f5012~mv2.jpeg)
If you are keen on becoming a frequent recipient of my research insights (including trade ideas), get in touch today.
Lester Davids
Analyst: Unum Capital
Comments