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

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


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?


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.

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.

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.

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.