Checking the Energy Sector's Setup

Energy is a sector that must be played very carefully. Since seasonal effects make certain companies more effective during certain parts of the year, we will attempt to break down the opportunities in the energy space. The summer driving season is just around the corner, and that tends to drive gasoline prices higher.

Looking at the top 10 holdings within the Energy Select SPDR ETF (XLE), we can identify a few things right off the bat. One, most of the companies have lower price-to-earnings multiples than the ETF and the broad market as a whole. This should be no surprise, as most of these companies have major oil operations, and oil prices have been coming down....445 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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