Tuesday, September 30, 2014

Chartology: "Energy- Worst performer over 90 days is on channel support" (XLE; ERY; XOP)

Patient readers have noticed a paucity of long recommendations in pretty much any type of long equity and that on the short side we've been sticking to the grains and precious metals instead of something like the Direxion triple-leveraged short energy ETF (ERY). That may be about to change.

From Kimble Charting Solutions:

Do you like to buy low and sell higher? XLE is the worst performing S&P 500 sector over the past 30 & 90 days. This decline has taken it down to support of this rising channel, that has been in place since late 2012. 
The ERY ($16.00) is the 300% inverse of the S&P's Energy Select Sector Index, XLE ($91.22). The XOP ($70.55) is the S&P oil & gas exploration & production ETF.