XLE Overvalued
Alright, this post was supposed to head out onto the blog hours ago, but at least the market is closed. I will make this short since it is 2:51 AM and I am extremely tired, but basically the bottom line is that Spider Energy (XLE) is way overvalued at its current closing price today of nearly $58. I am a betting man that playing the 50 day moving average as resistance is a great move, and the fund isn’t going to be going anywhere too fast. With oil as low as it now is, there are a great handful of companies that aren’t going to be performing nearly as well as they once were. In fact, I expect a handful to go bankrupt in the next 6 months to a year if oil continues to downtrend. I would be surprised if XLE climbs back above its 50 DMA, let alone $60. Give it a few weeks or a month to pan out.
