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

Canadian oil producers are receiving about $50 million a day less than they should because of the discount to US oil prices and global prices. He has written Calls on some of his holdings to limit the risks.

HIE is the inverse of this. If you are bearish on energy stocks then HIE is the way to play it.

There are about 9 or 10 energy ETFs in Canada and he chose this one because it is the most marketable. Technicals turned positive on this last week. Stock is trading above the 20 day moving average and is already outperforming the market.

Energy has strong seasonality from end of January until May of each year. Right now we are not in that time. We are now getting a nice little base pattern. When it crosses the 20 day moving average and starts to outperform the market, that will be a signal to buy. If they say XL will go ahead, it will have a big impact on heavy oil stocks. Between March and May we should get more news on the Keystone pipeline.

[Caller wants to reduce position] Energy stocks are having a difficult time, in a downward trend but now has a nice little base pattern in a tight trading range or the last two months. Sell after it breaks above the trading range and moves from end of January to end of May with seasonality. It is lining up but not there yet.

You are probably not going to get much above $17 next year and could visit lows next year.

Is energy equities, not bullion. He thinks the better upside potential is with the bullion.

Top 50% of it is a few names – largest companies. Lately those have been doing well. In a fear-driven market people lock to larger cap. It is a tough market now and when sentiment improves the active manager will have his time in the sun. If you want to trade it actively, it is not a bad vehicle. Not a long term hold.

(A Top Pick Aug 15/12. Up 1.28%.) Went into this in the middle of July and took profits earlier this week when he saw momentum indicators of the energy sector starting to roll over and started to underperform the TSE Composite.

(A Top Pick Sept 30/11. Up 13.45%.) Feels this one should go higher.

Energy has higher than 1 beta and will respond more significantly to stimulus. Believes Canadian energy will benefit during this period of stimulus. Nat. gas is not included in this as there seems to be endless supply.

(A Top Pick Sept 16/11. Up 3.48%.) Not as strong as it should be because Canadian oil producers are not getting full value for their oil. This situation is not going to change real quick. It will take a while to reverse itself.

Period of seasonal strength is from the end of July right through until about the 1^st week in October. The 2^nd period is from the end of January until the end of April. Chart shows that it broke a classic reverse head and shoulders pattern right around the end of July. Moved above its 20 day moving average and started to outperform the TSE composite. The potential is back to its previous high of around $18.50 level.

(A Top Pick Sept 30/11. Up 7.96%.) Not sure he would buy this one today. He likes energy but not all of the energy.

(A Top Pick Sept 16/11. Down 5.31%.) He is recommending this as a Covered Calls. Right now, it is about portfolio repair with his existing clients. If you can buy into this using options, he thinks it is a good one otherwise No.