iShares S&P/TSX Capped Energy Index ETF (XEG.TO)

There are some positive tailwinds, as well as some negative issues in the energy space. The situation going on in China is rolling back directly to what is going to be happening in the Canadian space. China is very complicated and not well understood. Looks like things are stabilizing and getting better. The massive US new found renaissance of energy independence is also creating a bit of a headwind. Differentials between the Canadian oil patch space and crude has caused a bit of an issue. With the Cdn$ coming down, valuations are very interesting. Technically stocks are starting to break out but he is solidly neutral on the whole space. You should be safe with this one.

Likes this because it has been a laggard for a while. Paying a pretty good dividend right now. Spread has narrowed quite a bit between Canadian producers and world prices. They’re getting the stuff to market.

Seasonal period has ended for energy. This one is holding up all right relative to what is happening in the oil market but not something he would be interested in. He would look to get into this later on in January as a seasonal run starts in February.

Started buying in June because of Keystone issue. There are a lot more ways to get that oil to market. We are going to see these Canadian oils start to do very well. The spread was terrible and has narrowed quite a lot. 2.25% yield.

Uses this on a fairly regular basis but uses a less than 4 or 5 others that are in this grouping. He is not really adding to his positions.

He is bullish on oil. There are now a whole bunch of opportunities coming in terms of pipelines.

(Top Pick Aug 15/12, Up 1.94%) Played it until it peaked. A seasonal trade. Oil sands stocks have similar seasonal characteristics to others. We are back into this period. He chose to play the US side but Canadian looks okay.

(A Top Pick. (BNN shows July 3/12 but our records indicate Aug 3/12.) Up 4.14%.) A basket of Cdn energy stocks. Spreads are narrowing now between Brent, West Texas and Cdn oil producers. Not as negative on the oil producers as he was a few months ago.

Oil service companies are leveraged to the upside. They benefit from increases in oil prices. He would be cautious of putting more money in here. Put new money in on a dip. It’s range trading. Buy below $15, but he would prefer a US ETF.

Chart shows this has a higher low. All that has to happen is for it to break out above the resistance of around $17. All of the components such as oil field services, oily producers, gassy producers and integrateds are ready to break out.

(Top Pick Mar 18’13, Down 4.91%) You want to pursue this in the latter half of the summer. Oil prices did not do well into May, their seasonal period. July starts the second period. Canadian side did not work and US side made a gain but underperformed. It was not a good play.

Market cap – weighted approach. Wait for a correction.

With or without the approval of Keystone? According to the IEA, the US will be the biggest producer by 2017. We just had the Exxon spill and there was the CP spill a couple of weeks ago. With all of this, why do you really want to buy oil and if you do, what oil are you going to buy? He is not hot on Canadian oil stocks at this time. (See Top Picks.)

Energy is still in favour. You may want to sell in May. It has broken out of a previous range and previous high. This dip is a buying opportunity. You have not missed the run. Jan to May is 10% gain but between March and May is 8% so you have a lot of run to go.

(A Top Pick Feb 23/12. Down 11.73%.) A seasonal play that just didn’t quite take. There are better names in this sector.