ERX (XLE) - Before we broke out (25.08.2016.)

ERX (Direxion Daily Energy Bull 3x Shares) and XLE (Energy Select Sector SPDR ETF )
ERX: The Fund seeks daily investment results of 300% of the performance of the Energy Select Sector Index.
ELX :The Fund seeks to provide investors with a low-cost "passive" approach for investing in a portfolio of equity securities of firms as represented by the Energy Select Sector Index.

We are maybe just one or 2 days before the biggest breakout of this year.
When bulls, sideliners, bears, perma bears, perma bulls , TESLA car owners realize that oil is not going down but going up suddenly everybody will want to buy oil related shares. Anything what is related oil .

That will happen when oil breaks above the previous high at 51.55$.
I tell you what you will see in ERX :
GAP. Green candle. GAP. Green marubozu . GAP. Small green candle. No gap. Big green candle....

Maybe today was maybe tomorrow will be the day when you need to get positioned here.
ERX or XLE .
Comment: Just to see the potential:


Before we broke out! Í like that!
+1 Reply
A picture says more than 1000 words :) Thanks for posting, keep up the good work!
+1 Reply
4 hrs chart looks not good.
This is only a comment about the long term (4 year graph) in your Comment about the potential of ERX. The triple leveraged ETFs like ERX always decay (lose money) over long time periods due to daily rebalancing. ERX will never come anywhere close to it's 7/2014 levels (until it gets to a reverse stock split which wouldn't count). ERX does not generate 3x returns long term. Since 7/2014 ERX has underperformed (< 1x) IXE and XLE. To see the potential of the underlying sector wouldn't it be better to show a graph of IXE or ERX? Your ideas are otherwise great and I follow you closely.
TRue. I wanted to post XLE but I didn'T switch. ANd after I couldn'T change.
BUt still ERX will be better than XLE.
haug01 chartwatchers
No problem with that, ERX is much better for short term trades, I think IXE and XLE should be used for longer term technical analysis, I made a mistake in my comment. It should read "a graph of IXE or XLE?".
suli chartwatchers
What do you think about getting in UWTI again? I got out at 27.
Can it be inferred that you prefer the general energy ETF funds (ERX and XLE ) over the straight oil ETF (e.g. UWTI) ?
Thanks in advance for your response.
Appreciate all you post.
chartwatchers archie123
I think first is the oil will rally ( and it is). But oil cannot go up to 300$.
After some time it will start to range. But Oil companies and oil related stocks like ERX, GUSH, XLE will rally for years.
So when we tag 60-70 we have to switch completely to ERX, XLE or individual shares like OAS, SXE etc.
They will be the big runners. I dont want to trade in the oil range.
That is the problem with the retail contrarian traders who are posting oil shorts below my posts. WHen they will be bullish on oil it will be in the range and they will lose money again.
You simply cannot save all these people. They have to wait 5-6 more years till the next recession when oil will fall again. And hopefully they will be long when it rallies again
+1 Reply
archie123 chartwatchers
Thank you. Appreciate you taking the time to respond and share your insights.
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