• It Might Pay To Be Long Energy, Short Financials

    2 monthes ago - By ETF Daily News

    From Steven Vannelli, CFA : As of this writing, WTI crude oil is back above $65/barrel, closing in on the recent $66.33 high on January 26. While oil and US equities have been in a “wedge” formation where, hemmed in by the January 26 high and the February 90 low, crude oil has broken out from its wedge.
    This is good news for US energy sector investment grade credit. The move up in oil corresponds with an expected 20bps contraction in spreads to around 100bps.
    If US energy investment grade spreads retreat to 100bps based on oil prices, it is possible we could see a 15% move higher in energy...
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