Fri. Jul 19th, 2019

TactiTrader

The Tactical Swing Trader

GUSH is an electronically traded fund consisting of holdings in many of the U.S. based companies that produce crude oil. When comparing GUSH to actual stocks from companies that GUSH holds it appears that many of those companies follow crude OIL better than the GUSH ETF itself.

Here is a chart comparing WTI Crude (/CL) to Denbury Resource Inc ($DNR). $DNR clearly follows crude oil all the way back nearly 15 years ago. We can see the highs and lows matching up perfectly along with clear over-sold to over-bought year over year, and month over month when looking at shorter time frames such as the 90 day 15 minute time frame.

compared to GUSH…

Now lets look at GUSH. Right away we can see that GUSH has not been around for very long and even, just 4 years or so. On top of that, it doesn’t even follow WTI Crude prices all that closely. You can see almost immediately how GUSH does not clime and fall with crude oil as one would expect. This makes my skeptical of the GUSH ETF, especially when several of the smaller and affordable OIL stocks within GUSH follow crude prices much better.

A better and affordable way to diversify in U.S. OIL?

Looking at other stocks in the GUSH ETF profile I can clearly see a much better pattern along side WTI Crude than GUSH itself. Many of these stocks are affordable companies who move with the current of OIL markets, many better than GUSH itself.

So the question is, should I pay $6 a share for a single fund which you have no control over, or take control and build your own diversified OIL portfolio using select companies that are part of the GUSH portfolio?

The top 3 cheapest stocks that GUSH has holdings in, $DNR, $CHK and $NOG, follow crude oil futures better than GUSH itself. With OIL being at an all time low and the GUSH ETF not moving very well with crude OIL prices ( as the charts show ) it makes me question whether it’s worth investing in GUSH at all.

Not all of the companies in the GUSH profile follow crude oil but I have found several that do.

Stocks under $10/share that follow WTI Crude (/CL)

DNR, CHK, NOG, CNX, WTI, CPE, UNT

 

Complete GUSH Holdings

Symbol Last Volume
DNR 1.22 8001533
CHK 1.85 38572246
NOG 1.98 4291341
CLNE 2.51 877999
LPI 2.91 3189643
SWN 2.95 13785185
XOG 4.11 2636149
WTI 4.57 1552901
GPOR 4.63 2991484
SRCI 4.71 2673104
OAS 5.19 6696999
AR 5.54 5882381
KOS 6.02 3718479
RRC 6.29 11876071
GUSH 6.42 5714116
CPE 6.49 3181632
QEP 7.29 4363816
CNX 7.36 3582970
CDEV 7.52 1976265
TELL 7.52 1458063
UNT 8.54 397284
JAG 8.82 1811575
CRZO 9.81 2656946
GPRE 10.51 221494
WPX 10.88 6093821
MGY 11.34 657576
SM 11.6 2854989
MRO 13.76 7194585
EQT 15.47 4892688
REGI 15.83 298657
WLL 17.01 4517161
PE 18.39 2563704
CRC 18.47 928738
MTDR 19.06 1716221
BCEI 20.66 147597
PARR 21.59 294912
NBL 21.92 2966981
COG 23.64 4138154
MUR 24.79 1065037
TALO 25.41 359913
APA 27.18 8024082
DVN 27.9 4754246
PVAC 29.06 189619
PBF 29.33 688377
PDCE 34.09 852308
INT 36.07 266959
DK 40.4 1236996
CLR 41.05 1096482
HFC 45.83 1172655
OXY 49.28 5613218
CVI 51.15 263929
MPC 54.87 3413962
XEC 59.13 775848
COP 59.9 4584295
HES 63.01 1597619
APC 71.04 11058734
REX 71.72 23477
XOM 76.13 6881115
VLO 81.84 1653406
EOG 88.57 5390545
PSX 96.8 1955952
CXO 100.93 1055494
FANG 107.41 1356003
CVX 123.54 3458858
PXD 146.52 1155019

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