First Trust Nasdaq Oil & Gas ETF (NASDAQ: FTXN) is up 6% yesterday’s massive stock move. FXTN has been walloped by the oil price war and has taken a nearly 50% loss the last month.
The First Trust Nasdaq Oil & Gas ETF, an exchange-traded fund, is linked to the Nasdaq US Smart Oil & Gas Index. It aims to deliver results that are aligned with the price and yield before the fund’s fees and expenses are deducted. The investment objective of the fund is to provide performance results that exhibit a 95% correlation to the Nasdaq US Smart Oil & Gas Index.
Will FXTN and Oil Bounce Back?
It is hard to predict if FXTN will come back to its former value because of the coronavirus and oil prices. Also, oil demand is down and not likely to jump back to $40 a barrel soon.
Oil prices started the week with a decline because investors were disappointed with the postponement of the emergency meeting of OPEC+ from Monday to Thursday. However, this is not a final decision: the date may be revised.
Yesterday, the head of the National Welfare Fund of Russia, Kirill Dmitriev, said that the deal to reduce production by 10–15 million barrels between Russia and Saudi Arabia was at a very advanced stage and was practically concluded. However, information on the postponement of the talks scheduled for Monday was followed, which caused tension in the investment environment.
In general, the oil market froze in anticipation of the resolution of this issue, volatility fell, and the spread between Brent and WTI Crude Oil again fell to $4, which may indicate the end of the formation of the position and market readiness for a breakthrough.
What Should First Trust Nasdaq Oil & Gas ETF Investors Do?
Some investors are hopeful oil will up, but many more retired investors that lost money are suing their advisors for putting them into First Trust Nasdaq Oil & Gas ETF.
Haselkorn & Thibaut, a national investor law firm, is investigating potential FINRA claims involving First Trust Nasdaq Oil & Gas ETF (FXTN). This may be of significance for investors who have experienced losses by investing in this ETF. A FINRA arbitration claim may help such investors recover losses.
Traders that have a high-risk stomach may consider buying FXTN on the dip and selling on the bounce up. It should be pointed out that this ETF is a high risk.
Stock Market Pre-Market Report
S&P futures are higher, 85 to 86 points, as…
- Speaker of the House Nancy Pelosi told members of her party on a conference call that the next stimulus bill to come before Congress will be worth at least $1 trillion.
- The Federal Reserve and Treasury Department are working on a program to purchase new small-business loans and free up more money for banks to lend.
- China reported no new daily coronavirus deaths for the first time since January, in another sign the global outbreak may be subsiding.
- The small business loan platform is said to have crashed for some time yesterday due to overwhelming demand.
European markets rallied as…
- Italy’s new coronavirus cases remained below the March 21 peak for the sixteenth consecutive day and fell on Monday for the third consecutive day.
- Spain’s new infections eased for the fifth consecutive day on Monday and remained below the March 26 peak for the eleventh consecutive day.
- Eurozone finance ministers are reportedly set to agree on a $543 billion stimulus package to support their economies.
- Austria became the first European country to map out a lifting of the coronavirus lockdown, with more countries preparing similar measures.
Asian markets gained as…
- Optimism increased that the global rise in coronavirus cases may be stabilizing.
- Japanese Prime Minister Shinzo Abe announced a larger-than-expected stimulus package worth $998 billion to support the economy.
- Chinese markets reopened from a holiday, playing catch-up with yesterday’s global rally.
And ahead of…
- U.S. JOLTS Jobs Openings for February (10 a.m.)
- U.S. Consumer Credit for February (3 p.m.)
- American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)
Tom, aka T Rex, is seasoned financial pro that cut his teeth on the Chicago trading oil futures in 1995. He has bachelor’s degree in finance and management. In less than 3 years he bought his own seat and set up shop on the exchange. For the next 10 years Rex traded his own account and some institutional accounts. In 2017, he decided to move to Florida and focus on educating traders and writing for financial websites.