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How to play oil's short-lived rally
There has been plenty of chatter about an alleged oil rebound in recent weeks. If theUnited States Oil Fund (NYSE: USO), which tracks front-month West Texas Intermediate crude futures, being up half a percent over the past month qualifies as a legitimate rebound, so be it.
Oil equities have been vastly superior over that period. For instance, the usually volatileSPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP) is up 10.3 percent over the past 30 days and that is even with the burden of an almost 5.4 percent decline over the past week. Still, there are reasons to be cautious with the oil patch, both futures- and equity-based exchange traded funds.
There is political wrangling regarding the US potentially becoming an oil exporter and headlines about Saudi Arabia moving to crush the U.S. shale boom. The Direxion Daily S&P ...
Full story available on Benzinga.com
Photo: Natalie Maynor