BMO S&P/TSX Oil & Gas ETF (ZEO.TO)

(Past Top Pick Oct.10, 2017, Down 7%) Sold it and immediately also sold XEG, both being Canadian oil ETFs, because he sees no pipelines being built in Canada. The current $50 spread between WCS and WTI is crazy, nuts. Canadian taxpayers are losing money. It's absolute madness.

Play it with puts and calls. It's stuck in a tight range with only one spike above $12 which he doubts it'll crack again soon. This ETF doesn't move enough for him, so he'd rather own the individual oil stocks.

Sell or keep holding? The disconnect between price of oil and price of producers can only last so long. Seems totally irrational. Some think that fossil fuels are a thing of the past. Eventually the market sorts out these disconnects. In the next couple of quarters, these stocks should move up.

The mega caps dominate the index. When you go equal weight in the sector you get more of a small cap return.

(No comments, other than comparable ETF’s that could be looked at.)

In the next couple of months there may be a little more upside. At the beginning of the year the stocks were overpriced. He is going to trim when it gets back to the high end of its trading range. Don’t add to it now but you could buy on pullbacks.

(A Top Pick Aug 4/16. Down 10.32%.) This looks like it is pretty close to a bottom now. It is probably not a bad buy here, but he is also hearing about oil slipping back down to $42.

(A Top Pick Aug 4/16. Down 7.48%.)

He was buying the energy sector last week. Now it is his biggest overweight sector. If you go back 5 years, the lows of 2011/12 were in the $12 range. Oil was on its way up to $100. When oil was $100, this ETF was almost $18 at the peak. The recent peak was $13 as oil was at $55 late last year. That is not really that sustainable. Own it between $11 and $12 and buy or sell below or above these limits. He is not inclined to add to it here.

He likes the equal weight approach. He is looking for a trade here. You could see a bit of a lift on this one.

iUnits S&P/TSX Capped Energy (XEG-T) or BMO S&P/TSX Oil & Gas (ZE0-T)? Both of these track very similar industries. This one is an “equal weighting” of the companies it holds. They will both be very correlated in their performance. If you think energy is going to continue rocketing and inventories are showing signs of drawing down, you are picking up some of the companies that have been beaten down the most.

(Top Pick Dec 21/15, Down 4.54%) He picked the equal weight one for more torque. He thinks you are fine here. We need volume to break out.