Well, my TREND1 and MOMO1 strategies have really been taking it on the chin the past few days – this is to be expected as they are so heavily in commodities. But looking at a few charts, I think we might see a reversal – OIL has an RSI of around 7, DIG is even lower at around 3. But what really has me interested tonight is a chart I created of the Bullish Percent Index for the components of XLE. It is now down to about 3% – near a historic low. Usually this means you’ll get a reversal. Here’s a chart:
And here’s the corresponding chart from Stockcharts.com of their $BPENER symbol:
Pretty damn compelling in my mind – I’ll be looking at going long DIG in the morning and possibly XLE, XES and/or XOP – all the charts look about the same.
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That is compelling. Nice candles today as well on the XLE and DIG.
[…] 14, 2008 by dskills Good lesson in sticking with a trade from this one. On July 8th, I recommended taking positions in XLE, XOP and/or XES. On July 9th, I took those position but was quickly […]