The ETF's recovery is starting to show its first cracks as we have dropped from Yesterday's highs and closed without an attempt to buy the dip. Volumes were the around the average for the day and the fall could be mostly a result from long covering. But there are some technicals that suggest we may return back inside the range. RSI and MACD have bearish crossovers...
Communications (XLC) led the week with a big +5.44% gain, but only after a big pullback the week prior. The sector was led by Alphabet (GOOGL) and Facebook (FB) with +9.55% and +9.21% gains respectively. Those two companies make up 44% of the ETF. Netflix (NFLX) also had a huge gain of +13.49% but only represents 5% of the ETF. Technology (XLK) finished the week...
Taking a look back at XLE we can see that the ETF has returned to test the area of breach of the symmetrical triangle (or the current support of the descending trend line). Pick up in volume shows that the activity has risen and market participants are getting excited. A breach was made a classical follow-up test was made. Currently, we are sitting at the support...
... for a .78/contract credit. Notes: Continuing to build 2021 positions ... . Have some on in the February cycle, so going out to March with 30-day implied at 40.1%, expiry-specific at 41.3%. 2.47% ROC at max as a function of notional risk.
... for a .71/contract credit. Notes: Highest background implied on my exchange-traded fund board with 30-day at 40.2%, expiry-specific at 41.6%. I've already got some January stuck out there, so am basically laddering out a smidge by selling the 16 delta out in the February monthly. ROC: 2.13% as a function of notional risk at max; 10.65% annualized at max.
Awaiting 10% correction to complete wave B of ABC(uptrend correction) Very similar to SPY (SNP500)
HIGHLY LIQUID OPTIONS SINGLE NAME EARNINGS (LISTED CHRONOLOGICALLY IN ORDER OF ANNOUNCEMENT AND SCREENED FOR >50% 30-DAY IMPLIED): HAL (13/61/13.9%),* Tuesday, before market open NFLX (25/50/11.3%), Tuesday, after market close AA (18/69/15.9%), Wednesday, after market close UAL (13/64/14.8%), Wednesday, after market close From a bang for your buck perspective:...
The sectors had a wild race this week with the backdrop of a up and down market with several rotations between small caps, mid caps and large caps. Energy (XLE) would ultimately be the winner, supported by production cuts in Saudi Arabia, higher than expected demand for oil, and some positive news from OPEC. There was a significant pullback on Friday after SEC...
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$DVN Long (Bullish Pennant in 15mins)
Check out the weekly chart of XLE with a potential resistance zone to focus on in the coming weeks/months
Update from a previous post: XLE developing nicely as the price has managed the get out of the range and yesterday we opened with a gap and there almost no attempt to push the price down and to fill the small gap. MACD's crossing is widening and the histogram is expanding as well. RSI moving to the overbought zone, but there is some more room for additional...
EARNINGS: There aren't a ton of earnings next week. Some financials are announcing, but I generally don't play those a ton for volatility contraction, since they never really frisk up that much, and all are below 50% 30-day implied here. KBH provides the best bang for your buck with the implied metrics I'm generally looking for (>50%), followed by DAL. Both,...
Energy (XLE) finds itself back at the top of the sector list for the first week of 2021. It's not something you might expect as the blue wave hit US politics, which doesn't bode well for traditional energy stocks. However, crude oil is over $50 a barrel for the first time since April after Saudi Arabia surprisingly cut output. The blue wave did have some expected...
XLE has been in a range for quite some time with the fall of Oil price from the first lockdown. But as thing recover and demand for Oil is returning to somewhat normal levels, the ETF is starting to give signs of life as well. RSI well above 50 and is moving slowly into overbought territory, but this means that there is more room for the price to rise. MACD has...
I normally publish this chart on weekly basis as part of my Week in Review work but I thought it was interesting to look at it today, in the context of the Georgia run-off election results. There is also the turmoil in DC, but that did not seem to impact the sector leaders list (the afternoon dip impacted all equally). Energy (XLE) is leading over the two days,...