I was watching XLE and ERX today. Both of them closed on daily maximum with high . ERX is just 1$ from the new highs.
Smartmoney is buying ERX and XLE . They are positioning for the breakout from the consolidation.
Oil is still suffering at the . Does smartmoney know something what we and oil doesn't?
I would say : yes.
I'm waiting for a positive surprise here in oil . A surprise to the upside. Something what ERX and XLE ( and a lot of idividual shares) are pricing in.
Today we tested back the again. The falling dollar helped a lot for oil to recover.
I'll be watching very carefully the HCL low at 43$. We have no business below 43$.
If crude goes below 43$ with the falling ERX and XLE I will get out of the position.
I told you : smartmoney knew this coming. They were collecting these shares whole this week and last week.