PowerShares Dynamic Energy Sector ETF (NYSE: PXI) — This exchange-traded fund (ETF) seeks to provide results that are comparable to the Dynamic Energy Sector Index. It invests over 80% of its assets in stocks of energy companies, and for more than nine months has led a long list of other energy ETFs. Its holdings include companies that are engaged in the production and distribution of energy products. This includes oil services, pipeline, and solar, wind and other non-oil-based energy.
On Feb. 23, at $42.20, the Trade of the Day said, “Since August, the price of PXI has run from $28 to over $40, and if energy prices continue to move higher, it is likely that PXI will follow along. Technically, PXI is in a powerful bull market. Note the recent pick-up in volume.”
A shallow pullback took this ETF to just under $40 where it reversed on our internal Collins-Bollinger Reversal (CBR) signal. Buy PXI for continued upside in the energy sector. The near-term target is $48.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
