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View Full Version : What are my energy mutal funds going down while oil is going up?



Railgunner
03-04-2011, 06:39 PM
I don't get it... When oil spiked a few years ago energy funds like

FNARX
FSESX
FSTEX

Went way up and then they crashed when oil came back down...

But now they are drifting down even as oil goes over $100 a barrel?

Why?

nickndfl
03-04-2011, 07:11 PM
The oil price spike may reduce profits for oil companies. Keep a watch list of the majors and you will see most were down today. PBR, TOT and STO were up.

chartsrgood
03-04-2011, 08:05 PM
Some of the oil stocks follow the Dow/S&P more than the price of oil.
Take a chart of the oil fund(s), a chart of oil, and a chart of the S&P going back at least several years........you will see what follows what/ whether the oil funds you are talking about track the price of oil more or track the stock market averages more.

DenariiForMe
03-04-2011, 08:17 PM
I noticed the same problem recently with PXE, an oil services ETF. It seems to be tracking the general stock market rather than crude itself. For a while, USO was tracking crude better, but now it doesn't seem to be either. I don't know, for now I'm sticking with PXE, I can't complain about its longer-term performance, despite the last two weeks or so of disappointment. If you find anything better, let me know.

nickndfl
03-05-2011, 10:52 AM
Just when you think you have figured it out, the market throws you a curve ball. Classic statistical analysis will help many understand with a larger sample size and longer period of time, but the day-to-day and weekly swings nobody can predict/analyze with 100% accuracy.

This week WNR missed revenue and EPS, but was up 7% on the day of quarterly earnings announcement. Naturally I used common sense and sold in the morning on the dip after the news, but later in the day the stock went up over $1. Go figure.