Short XLE
Investors are piling back into energy along with other inflation trades. There's a large gap down to $90.50 area. Crude oil, shown here by USO, has also tumbled.
Trade is off if XLE makes a new high or USO/crude oil turns up. Press into a short position if crude breaks below $65.
Could also work as a pair trade for those bullish on oil, going long USO.
Trade is off if XLE makes a new high or USO/crude oil turns up. Press into a short position if crude breaks below $65.
Could also work as a pair trade for those bullish on oil, going long USO.
Note
Oil and XLE up again today on reports of a new missile hitting Ukraine. The gap between XLE and USO has widened further though, and XLE is hitting overbought on daily RSI. Trade active
Looks like the trade is a go as of today. I am in weekly puts. XLE has about 5% to close the gap, the performance gap with USO is around 8 percent. If CL breaks $65, could turn into a larger correction of 10% or more.
Another development: USDRUB looks like it wants to breakout and run towards 120. Most likely catalyst would be the bottom dropping out on oil.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.