Oil was rallying yesterday and today. Stocks were in pullback mode. As oil holding its highs and stocks their daily cycle lows I think there is a decent chance that ERX printed the daily cycle low 3 days ago. It broke out of the descending channel tested back and heading to new highs.
I'm writing this before market close so all who not positioned in oil or oil...
I'm in this vehicle for a ong time.
It seems to me that the pullback is done. We broke out of the channel and have the testback.
If oil rallies on Monday price will soar after the gap open.
Slow Stochastic had just crossed up, RSI left overbought.
It's a long .
If the main indexes (S&P , Nasdaq, Dow) printed their bottom on Friday it will support the rally in ERX also.
Oil related shares are not buying that SA skipped the deal yesterday.
Maybe somone had to open some long positions at suppressed prices today???
ERX, GASL closed the GAP in one hour...
This is not the start of an oil decline below 30$....
Natural Gas and Crude Oil look like they are taking the lead in turning downward which is going to take ERX (Energy Exploration Companies) down with it. Short below $20
A breakout and a follow through.
+4,67% today.
In the following days we could test back the breakout at 20.00. especially if oil doesn't break out and prints an inverse head & shoulders...
If oil breaks out we just slice through the gap.
ERX (The fund seeks daily investment results of 300% of the performance of the Energy Select Sector Index .) broke out today.
The fund had its biggest rally today since 11.16.2015. The breakout has a good volume.
ERX had a higher low when oil was printing a lower low on 02.11. So the energy shares were pricing that oil is bottoming soon. Based on this oil will...
It's been going down for a long time and for the first time today we've seen an increase in price with good volume. The upside looks a little better than the downside at this moment.
Oil is headed lower from here. The Canadian dollar is also showing tremendous weakness and only making the case stronger that oil is breaking down. With that said, energy stocks are going to follow. I've been following XLE and ERX for 5 years. This is a tremendous opportunity to stay short, but also prepare to go long when the time comes.
