"One sector I’ve been watching closely for an attractive entry point is energy, and that point is here in the Energy Select Sector SPDR (NYSE: XLE)," says Doug Fabian in The ETF Trader.

"This fund’s components include companies from the following industries: oil, gas, energy equipment, and energy services.

"The fund will normally invest at least 95% of its total assets in common stocks that comprise the relevant Select Sector Index. 

"With XLE, you are getting the best-of-breed energy companies out there today. Companies such as Exxon Mobil, Chevron and Schlumberger are three of XLE’s top holdings.

"Technically, XLE is trading above both its short-term, 50-day moving average as well as its long-term, 200-day moving average. More importantly, after hitting a new 52-week high in mid-October, XLE now has pulled back just enough to where we can enter into the fund at an attractive price.

"Of course, we always must place a stop-loss order whenever we buy something, so along with your market order to buy XLE, I also want you to place a stop-loss order of $54.50. This price is approximately 7% below today’s closing value of XLE.

"You don’t want to be long in a volatile sector like energy without a safety net, so please make sure you have your protection firmly in place.

"This market just has too strong of a penchant for going higher and, as such, we are not going to try and buck the trend. Of course, if things change, so too will our position. But until then, go long in this market with XLE."