After you receive this Alert, we will make the following trade:
-- Buy 120 shares of Energy Select Sector SPDR Fund ( XLE
) at or near $79.30. Following this add on trade, XLE shares will account for roughly 2% of the portfolio.
With a larger-than-expected cut in oil production by OPEC+ (announced the morning) we like our XLE position to rise further as crude oil supplies cause the commodity to rise. There was a warning by Saudi Aramco management about oil supplies going forward being very tight.
This is actually an amazing development, and this 2 million barrel a day cut is unprecedented with the market so tight in supply. We'll continue to look toward adding more shares here down the road.