Sunday Prep 8/22 - $XLE - Want to short bounce on energy names
One thing that is important to point out is the fact that each weak I look at all the different sector ETFs to see their charts. Just because something had a down week doesn’t mean that I’m not interested in it. Look at the Financial sector for example. They were down over 2% for the week. But then look at the $XLF chart.
You can see it’s really just pulled back to support and is still looking very bullish. Contrast that with the Energy sector via the XLE chart.
This is a completely broken chart in my opinion. But that doesn’t necessarily mean I want to short energy names this week. Something this sold off may need a nice relief bounce first. So I have alerts set for when the XLE pushes back into the underside of the daily 20sma. THEN I might be looking for shorts on energy names.
You can see it’s really just pulled back to support and is still looking very bullish. Contrast that with the Energy sector via the XLE chart.
This is a completely broken chart in my opinion. But that doesn’t necessarily mean I want to short energy names this week. Something this sold off may need a nice relief bounce first. So I have alerts set for when the XLE pushes back into the underside of the daily 20sma. THEN I might be looking for shorts on energy names.
