All of those range-bound charts make me feel smart for hiding out in $ENCC (Horizon's Cdn energy covered-call ETF). It's NAV has tracked the rise in WTI while fleecing a tidy 15% yield off the bulls while they restlessly jostle around, waiting for...well, whatever they're all still waiting for.
I am curious how much you would take off the table. For example, would you take exposure down 50% from here? It is definitely making me nervous how bullish some are getting without the price of crude ripping and activity levels essentially flat.
Depends on the company. Didn't sell any Strathcona but completely sold out of Cenovus. OFS names like STEP trade differently now and are near entry points even with 2H uncertainty regarding drought conditions. I think it's time to get completely out of high beta oil stocks and overvalued names like CNRL, just my 2 cents.
Makes sense. The (potential) drought in Alberta and low DUC count make for an interesting dynamic. Potentially the rig count ticks up higher than the price of crude. Time will tell I suppose.
Time will tell. I do enjoy your more contrarian cautious stance to bring me back to earth. It’s hard to sell at the top.
All of those range-bound charts make me feel smart for hiding out in $ENCC (Horizon's Cdn energy covered-call ETF). It's NAV has tracked the rise in WTI while fleecing a tidy 15% yield off the bulls while they restlessly jostle around, waiting for...well, whatever they're all still waiting for.
I am curious how much you would take off the table. For example, would you take exposure down 50% from here? It is definitely making me nervous how bullish some are getting without the price of crude ripping and activity levels essentially flat.
Depends on the company. Didn't sell any Strathcona but completely sold out of Cenovus. OFS names like STEP trade differently now and are near entry points even with 2H uncertainty regarding drought conditions. I think it's time to get completely out of high beta oil stocks and overvalued names like CNRL, just my 2 cents.
Makes sense. The (potential) drought in Alberta and low DUC count make for an interesting dynamic. Potentially the rig count ticks up higher than the price of crude. Time will tell I suppose.
Another good article.
Warren Pies agrees with your sentiment.
If oil rolls over then I think that takes some pressure off ling end yields.
Not a bad time to rotate a bit from energy to REITs.