Sunday Prep 8/22 - $XLE - Want to short bounce on energy names

AMEX:XLE   SPDR Select Sector Fund - Energy Select Sector
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.


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