Best ETF to Play an International Oil Crisis

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iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund (NYSE: IEO ) - This exchange-traded fund (ETF) tracks the Dow Jones U.S. Select Oil Exploration & Production Index, which is composed primarily of U.S.-based energy companies like Occidental Petroleum (NYSE: OXY ), Apache (NYSE: APA ), Anadarko Petroleum (NYSE: APC ), Devon Energy (NYSE: DVN ), EOG Resources (NYSE: EOG ) and Chesapeake Energy (NYSE: CHK ). In the event of a serious international oil crisis, this group of stocks should outperform the international oil giants who are captives of the Middle East market.

Yesterday, IEO broke to a new high jumping from a tight advance line. The line was set following a breakaway gap from a major resistance line early in November. Note yesterday's huge volume and the stochastic buy signal.

The target for this investment is difficult to measure. But if crude oil was to exceed $110 a barrel, IEO could be targeted at $80 or more.


Trade of the Day - IEO Chart

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: ETF , IEO

Sam Collins

Sam Collins

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As of 12/24/2014, 02:12 PM


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