We're Trimming a Position After Double-Digit Gains
After a 20% move since mid-January, we are prudently locking in a slice of our position in XLE.
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| Symbol | Transaction Type | #Shares Traded | Recent Price ($) | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
XLE | Sell | 90 | 94.40 | 1,345 | 3.0 |
* We're locking in a slice of our double-digit gains in XLE, and see more upside ahead.
After you receive this Alert, we will sell 90 shares of the Energy Select Sector SPDR Fund XLE at or near $94.40. Following the trade, XLE shares will account for roughly 3.0% of the portfolio.
As we close out the quarter, we are taking advantage of the almost 20% move in XLE since mid-January, which also has it in overbought territory.
We see this as a prudent move, but as we've discussed, signs are the global economy is faring better than many expected. Recent industrial profit data for China also suggests that economy is turning a corner, something we will look to confirm with next week’s March PMI figures. With OPEC+ extending its production cuts through Q2 2024, if the economy performs better than expected, we could see more data like today’s that showed smaller-than-expected inventory builds. That would spark renewed concerns over supply-demand imbalances, potentially sending oil prices and our XLE shares higher.
For that reason, even though we are locking in some gains today, we will want to have meaningful exposure to XLE in the portfolio. As we make the trade, we recognize XLE shares are past our current price target. Once we have next week’s PMI data for China, the eurozone and the U.S. in hand we will formally revisit that target.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long XLE.
