The Energy Select Sector SPDR (ETF) XLE, the largest equity-based exchange-traded fund tracking the energy sector, is up nearly 12 percent over the past month. XLE’s exploration and production and more volatile counterpart, the SPDR S&P Oil & Gas Exploration & Prod. (ETF) XOP, is higher by 29.6 percent over the same period.
Not surprisingly, those gains and other impressive returns notched by rival energy ETFs in short order are making life hard for short sellers who previously attacked the energy sector with plenty of fervor. Data indicate forced short covering of energy stocks is becoming a regular occurrence, as the recent oil rally has caught many bearish traders off guard.
Read more at Benzinga.
Photo: Tom Blackwell