Energy XLE Downtrends to New Low
Wed, Aug 16, 12:31 PM ET, by Corey Rosenbloom
So far in 2017 we’ve seen relentless selling pressure in the XLE (Energy ETF).
Here’s the current update as the fund makes yet another new swing low in August:
Like I highlighted this morning in SNAP, “weak stocks tend to get weaker.”
This logic also applies to ETFs and broader markets as well.
The Energy sector is the latest victim of “weak stocks get weaker” as price broke to a new swing low this morning in an ongoing daily downtrend.
Also, when looking to trade a bullish swing trade in a stock scan, take a moment to check the sector trend to increase your chances of a successful outcome.
Given two stocks – one in Energy and the other in an uptrending sector like Technology (XLK) – choose the one with the stronger (more bullish) sector trend.
While it’s not always as clear as this, take advantage of the times it is.
Unless you’re a bear – and making a lot of money here – stay out of the Energy sector until/unless we get a reversal.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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