ETF CORNER

XLE : Being concerned never hurts !

In mid September I had made an essential post on XLE (Click Here) with the title "The biggest concern for the Bears".     I was concerned about XLE because I felt that the rally has been incomplete and that XLE could rally into the low to mid $60's. I have updated this last month's chart and show you in green the potential left for XLE. I really think that levels on USO at $45 and XLE around $63 would be the two missing pieces of this Bear puzzle !

XLE : It's in your head !

XLE (OIl & Gas) will not top out if USO (Oil ETF) doesn't top out ! In the previous post on USO, my final target is $45 roughly. I believe that XLE will be in the $62-$63 area by the time USO reaches $45. XLE could still be in a "head" formation in a broader head and shoulders top ! The chart below is self-explanatory !

ERY : Triple short XLE !

One reader asked me what to do about  ERY today, and I though i would share my opinion with all of you out there ! ERY(Triple short XLE) is in a death spiral ! XLE has broken to the upside as I have tried to show recently (Click here!) . I have previously adressed my fears of a rally of XLE towards $60 leading the S&P 500 above 1100 (Click Here!) . So far, XLE is still in rally mode, and I don't see why would someone rush in and buy ERY today. Of course this ETF could produce significant returns once XLE reverses back down , but I don't see XLE revesing just yet !

XLE : Another breakout attempt !