The dollar’s at multi-year lows.
Oil reaches new recovery highs along with S&P, Nasdaq.
So, what does XOP, do? Nothing.
Price action ended essentially unchanged.
The positive market bias along with extremes in opposite directions for the dollar and oil should have done something, right?
“Should” is a word never to use in any market analysis. What ‘should’ happen rarely happens and usually, it’s the opposite.
XOP reached its high last week at the same time huge volume was moving into the inverse fund, DUG.
This week, is lower XOP action that looks about ready to roll over.
The market itself has shown where to go for the short side. It’s the one sector that appears ready to move lower.
The position in DUG is being maintained (not advice, not a recommendation). Because of today’s tight action, the stop remains at DUG 24.72.
Charts by StockCharts