Long Term Bearish on XLE
The deflation narrative is now the contrarian narrative. However, XLE the SPDR Energy giant is signaling a hefty drop on the 3M stochastic RSI. This signal has been produced 3 times in the last two decades leading to multiple 50%+ drops in value of the fund.
The 5-wave impulsive move looking for a similar 3 wave a-b-c corrective wave down to it's most recent corrective wave.
The yield curve un-inversion (zoom in on a 10Y/02Y) is signaling the opposite of the media narrative of higher rates for longer (pending Trump).
However, I believe bond bulls are preparing for economically stormy waters in equities. XLE appears to reflect this.
Considering Jan '27 70P's for wave A with a PT of 55-65$.
Not financial advice!
.
.
.
.
.
.
Proverbs 14:12 There is way that seems right to a man, but it's path that leads to destruction.
Psalm 119:105 Your word is a lamp to my feet and a light to my path.
Acts 4:11 This Jesus is the stone that was rejected by you, the builders, which has become the cornerstone.
The deflation narrative is now the contrarian narrative. However, XLE the SPDR Energy giant is signaling a hefty drop on the 3M stochastic RSI. This signal has been produced 3 times in the last two decades leading to multiple 50%+ drops in value of the fund.
The 5-wave impulsive move looking for a similar 3 wave a-b-c corrective wave down to it's most recent corrective wave.
The yield curve un-inversion (zoom in on a 10Y/02Y) is signaling the opposite of the media narrative of higher rates for longer (pending Trump).
However, I believe bond bulls are preparing for economically stormy waters in equities. XLE appears to reflect this.
Considering Jan '27 70P's for wave A with a PT of 55-65$.
Not financial advice!
.
.
.
.
.
.
Proverbs 14:12 There is way that seems right to a man, but it's path that leads to destruction.
Psalm 119:105 Your word is a lamp to my feet and a light to my path.
Acts 4:11 This Jesus is the stone that was rejected by you, the builders, which has become the cornerstone.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.