Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cross-Asset Strategist & Quantitative Analyst

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Technical Analysis

Energy Select Sector SPDR Fund / Technical Analysis

Historically, The Economist magazine covers have been excellent contrarian market signals (see <a href="https://www.smartkarma.com/insights/poised-for-a-bond-market-rally" target="_blank" rel="noopener">Poised for A Bond Market Rally</a>). The Economist may have done it again this week with a focus on the global warming effects of heat waves in North American and floods in Germany.We believe coal and energy equities represent potential contrarian buying opportunities for investors. In addition, the stock market appears to have undergone a bullish reversal off a panic bottom, which should resolve in higher prices in the days and weeks ahead.

Historically, The Economist magazine covers have been excellent contrarian market signals (see Poised for A Bond Market Rally). The Economist may have done it again this week with a focus on the global warming effects of heat waves in North American and floods in Germany.We believe coal and energy equities represent potential contrarian buying opportunities for investors. In addition, the stock market appears to have undergone a bullish reversal off a panic bottom, which should resolve in higher prices in the days and weeks ahead.

Quantitative Analysis

The global economy is poised for a bull market in commodity prices. Within the commodity-producing sectors, there is a substantial value opportunity for investors in energy stocks owing to the reluctance of management to invest in new supply should oil prices rise.The cyclical rebound should translate into higher oil prices over the next 12–24 months. In the past three years, the ratio of energy stock prices to crude oil has been relatively flat. Energy stocks should rise in line with oil prices, which creates considerable profit potential under a bullish oil scenario.

The global economy is poised for a bull market in commodity prices. Within the commodity-producing sectors, there is a substantial value opportunity for investors in energy stocks owing to the reluctance of management to invest in new supply should oil prices rise.The cyclical rebound should translate into higher oil prices over the next 12–24 months. In the past three years, the ratio of energy stock prices to crude oil has been relatively flat. Energy stocks should rise in line with oil prices, which creates considerable profit potential under a bullish oil scenario.

Value Opportunities in the New Commodity Supercycle

United States

Energy Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA.  The ETF tracks the performance of the Energy Select Sector Index.  The ETF holds large-cap U.S. energy stocks. It invests in companies that  develop & produce crude oil & natural gas, provide drilling and other energy related services. The holdings are weighted by market capitalization.

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Energy Select Sector SPDR Fund (XLE US)

Another Magazine Cover Buy Signal?

We believe coal and energy equities represent potential contrarian buying opportunities . As well, the stock market appears to have undergone a...

Cam Hui

Value Opportunities in the New Commodity Supercycle

The global economy is poised for a bull market in commodity prices. There is a value opportunity for investors in energy stocks owing to the likely...

Cam Hui

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Market Cap (USDm)

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