Buy Energy ... Sort of

Buy energy? Buying energy here seems like a rotational play to me -- but not coal, not yet. Not steel, either. I know this isn't energy per se, but some folks may want to lump it in or include it in some kind of energy basket. Just say no. These still look like second half plays to me. We aren't there yet.

Energy Select Sector SPDR (XLE) Source: StockCharts.com View Chart » View in New Window »

I have been, and still am, a natural gas fan, but one can expand his or her focus in the energy space. The most common approach is going to be the Energy Select Sector SPDR (XLE). Overall, this is an attractive chart. Price seems to be breaking out from an ascending triangle. Although there is a longer line of resistance just above the breakout, the trend line has so much trading far beneath (lots of empty air) that I don't really view it as significant resistance. The one concern is the weaker relative strength indicator (RSI), although there is strength in the stochastics. It is bullish, but not very strong....140 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.