Thrust energy in Oil & Gas sector XOP, continues to erode.
The weekly chart of XOP, has the longer term view … including the confluence of trend-lines; another factor.
Now on the daily, it too is losing power. Force Index (bottom of chart) has successive lower highs and on Monday, a lower low as well.
Downward pressure is increasing.
The EIA report is released at 10:30 a.m. EST. We’ll see if there’s another inventory build.
The firm is currently short this market via DUG (not advice not a recommendation). Hard stop: DUG, 24.72
There’s some level of protection (against volatility) with DUG reaching an apparent low last week and XOP making its high.
Moving on to Gold: GLD, GDX, DUST
Pre-market shows gold flat and the miners (GDX) trading slightly higher; still on track to the target in this update.
If and when targets are reached, we’ll assess whether or not a low risk (short) position is available via DUST.
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