What a week for oil and energy. Okay, I know... what a 6 months! Ugh!
In case you're living under a rock (or just need a succinct summary of the carnage of late), oil has dropped about 2% or more every day this week except Tuesday, and looks on track to do so again today (Friday, Dec. 12th). All told, WTI oil prices as of mid-day today have dropped below $58, representing a decline of more than 46% since the commodity’s June 20th closing high of $107.95. In that time, natural gas prices and energy stocks have both given up about 25%, based on the US Natural Gas ETF (NYSEArca:UNG) and the Energy Select Sector SPDR ETF (NYSEArca:XLE), respectively. The Market Vectors Oil Services ETF (NYSEMKT:OIH) meanwhile, is off about 38% since oil's slide began.
Interestingly, this week's big shellacking has seen both oil and the dollar move lower, with the DXY index losing a little more than 1%. Natural gas prices are actually moving higher, and UNG's chart looks to the naked eye like this week could mark the beginning of a bottoming formation.
One small group that's bucking the trend
Last week, I highlighted Enbridge Energy Partners (NYSE:EEP), the Houston-based US affiliate of Calgary-based Enbridge (NYSE:ENB). EEP, ENB, and some other pipeline stocks have been (knock on wood) somewhat bucking the devastation in oil and energy. Accordingly, EEP and ENB continue to be among the only energy investments sporting green Trade Triangles in my MarketClub portfolio.
As fate would have it, ENB made impressively good news the last couple weeks, making a big enough splash to get the CEO invited on for a guest appearance on – wait for it – Jim Cramer's Mad Money show on CNBC. Whatever your vibe about Cramer, you ought to take 8 minutes and watch CEO Al Monaco's performance (here). [Read more...]