Energy stocks were among the top sectors of the entire stock market in the first quarter of the year, but interest in them has faded since July as the sector went through a typical consolidation/pullback phase that happens to it almost every single year in the summer, as oil prices seasonally tend to make a peak every July.
Last year was an exception to that, because of the March crash in the financial markets, but now things are back to normal when it comes to seasonal energy trends.
This consolidation period now appears to be coming to an end, as the energy stock XLE ETF turned up yesterday for a nice rally.
I have a position in XLE in my IRA and consider it a core sector to invest in, as I am a believer that the inflation we have seen this year is not simply some temporary blip, but will be a defining factor for the next few years in the markets and the economy.
In my main larger account, I own individual energy stocks, instead of the ETF. Here are several I own that are in a good position now.
IMO cleared resistance at $28 yesterday. It pays a 3.21% dividend.
E is a huge European energy stock – so not only is it an energy stock, but an ADR that can benefit from US dollar declines. It also pays a 3.2% dividend.
Another foreign energy stock is LUKOY.
LUKOY pays a 4.03% dividend.
For comparison crypto wonder stock COIN pays no dividend at all and is fading fast.
I did a post last week about COINO, as a stock to short and bet against, as a way to play more declines in Bitcoin and crypto currencies after their most recent failed rally came to an end.