I’m not one to throw out a new chart pattern after each daily closing candle, but it’s tough to ignore how many Inverse Head & Shoulder patterns I am seeing in the Energy/Commodity and Transports space. In case you forgot, these sectors were monsters back earlier in the year.

I will let the charts do the speaking for this post.

XLE:

XOP:

OIH:

KOL: My favorite

XLB:

IYT:

MOO:

Also can’t forget what were seeing in important markets..

EEM: Leader

EFA: Brokeout and re-tested

EWW:

GXG: (Worst IHS, but very encouraging for risk-on of this space)

FM:

Do I think most oil drillers/producers besides the mega-caps are overlevered and going to have an issue come 2017? Yes. But that won’t stop me from putting on trades in these sectors with great risk/reward potential.

Time to dig through the components..

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Keep an eye on energy as it seemed to not give a hoot about what the market was doing today.