From the desk of Tom Bruni @BruniCharting
We’ve been watching some of the Energy ETFs we track most of this year for potential mean-reversion opportunities on the long side.
We recently discussed for our Institutional Clients an opportunity in the Small-Cap Energy ETF (PSCE), which rallied 17.50% from its 2018 lows before reversing back to those levels again.
The main issue in Energy remains that there appears to be an attractive mean reversion opportunity at the ETF level, but when we drill down into individual stocks there aren’t many clean setups…making it difficult to identify what the main drivers of this move higher would be.
Let’s take a look.