Sector Reversal Case Builds
While the overall markets move higher, XOP continues lower and Exxon (XOM) just broke its trend-line to the downside.
XOM is the largest cap in the Oil & Gas Exploration Sector.
We’re using XOP as the proxy and DUG for leveraged inverse.
Over the next day or so, we could get an underside test of the break. However, it was not really dramatic.
With all eyes on other markets like S&P, Dow, Q’s and so on, XOM may just decide to drift on lower …
At this point, there’s nothing that says to cover shorts by exiting DUG (not advice, not a recommendation).
The trade is progressing. So, we’re going to leave it alone.
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