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.
KOL: My favorite
Also can’t forget what were seeing in important markets..
EFA: Brokeout and re-tested
GXG: (Worst IHS, but very encouraging for risk-on of this space)
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..
Keep an eye on energy as it seemed to not give a hoot about what the market was doing today.