ProShares UltraShort Energy

$XLE showing signs of being tired on the daily chart. No onew knows what is next.

Source: Sunrise Trader

🌟🌟🌟Black Gold is back with a vengeance! Brent Crude has officially broken through the USD 90 per barrel threshold, sparking a fresh wave of panic across global markets and sending inflation weary tech stocks running for cover.

A good tactical bet is to invest in $SPDR Energy Select(XLE.US) as it provides exposure to the Top US Energy giants. These include $ExxonMobil(XOM.US)$Chevron(CVX.US)$ConocoPhillips(COP.US)$Marathon Petroleum(MPC.US)and many more.

The expense ratio is a low 0.08%. The current distribution yield is 2.44%.

Performance wise, XLE is up 37.09% year todate. With the current Iran war, XLE stands to benefit as institutional funds may actively rotate out of high flying tech stocks and pivot to XLE as a macroeconomic hedge.

If there is something for us to cheer about in the market, its $XLE and some names like $Eli Lilly(LLY.US) $Johnson & Johnson(JNJ.US) $Abbvie(ABBV.US). Lily especially is giving us something to hope for. I will hold longer.

🌟🌟🌟The simultaneous drop in $Tesla(TSLA.US)and $Alphabet - C(GOOG.US)share price coupled with Brent Crude oil piercing USD 100 signals a brutal macro change.

I would build immediate exposure to $SPDR Energy Select(XLE.US)as they represent the best US Energy giants like $ExxonMobil(XOM.US)and $Chevron(CVX.US)which would benefit from rising oil prices.

I would also pivot to $SPDR FD Consumer Staples(XLP.US)as this ETF serves as the ultimate safe haven equity anchor during periods of high stakes market volatility.

Consumers will cut back on buying tech gadgets and EVs before they stop buying groceries, medicine and household essentials.

XLP is a great defensive Buy as it is the perfect low cost vehicle to generate passive income and shield my capital from geopolitical inflation shocks.

While XLP is not an exciting play for explosive gains, it is a great strategy to protect my capital until the broader macro storm clears.

Sector rotation heat map. $XLC & $XLY tops, $XLE is weak as we're probably closer to a deal.

🌟🌟🌟This week, the oil shock is the real portfolio mover. CPI and bank earnings matter but Hormuz shutting is the kind of macro grenade that rewrites everything else.

If Iran truly shuts the Strait of Hormuz, that is 20% of global oil supply suddenly at risk. Oil will spike resulting in transport and consumer sectors sinking. Inflation expectations jump. This may lead to bond yields rising, interest rate cut odds collapsing.

Volatility will spike which may lead broad indices wobbling. Everything gets repriced around the energy shock.

A good ETF to buy is $SPDR Energy Select(XLE.US)which represents the US oil giants like $ExxonMobil(XOM.US) and $Chevron(CVX.US). XLE currently pays 2.85% dividend yield and a low expense ratio of just 0.08%. XLE is up 3.7% last week and 20.6% YTD.

Let's pray for peace in the region and that world leaders choose restraint over escalation.

$SPY looks good, no problem. But my concern is this.

Oil futures doesn't $Colgate(CL.US)_F doesn't exactly have a good look especially with the +ve news market is hearing this weekend.

Diesel-driving bondholders are NOT having a good time rn $XLE $TLT