Courtesy of Read the Ticker
Low prices fix low prices, and eventually the shorts will be forced to cover and buy back their shares and force prices higher. This sector is 'this close' to such and event.
Both Hurst cycles and Wyckoff supply and demand action are warming up to the bullish side for the energy sector (XLE).
This is on the back of growing inflation fears. Inflation sourced from wage growth in the US and world wide central bankers (Japan [BOJ], Europe [ECB] and the USA [FED]) printing money at the same time. You should note this has never happened before, all three at the same time, printing.
Yes, the energy sector has suffered from the lower oil prices but soon the shorts will have to judge how much lower energy stocks can go, as you can see the SPDR Energy Etf (XLE) has been unable to get below $50. Demand is present.
What to do? Watch for significant Wyckoff demand foot prints to see price test upper resistance (sign of strength), and then take action from a strong change of character.
SPDR Energy (XLE) dominate cycle.
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The energy sector leading commodity and the crude oil dominate cycle.
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If the wider SP500 holds up into the US elections then energy stocks percentage returns could out perform.
Bullish oil fundamentals from Mark Gordon
Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination
of Gann Angles, Cycles, Wyckoff and Ney logic is the best way to secure better timing than most, after all these methods have been used successfully for 70+ years. To help you applying Richard Wyckoff and Richard Ney logic a wealth of knowledge is available via our RTT Plus membership.
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Investing Quote…
..“The power to determine the trend of the market is due to my knowledge of the characteristics of each individual stock and a certain grouping of different stocks under their proper rates of vibration. Stocks are like electrons, atoms and molecules, which hold persistently to their own individuality in response to the fundamental Law Of Vibration"…."After exhaustive researches and investigations of the known sciences, I discovered that the Law Of Vibration enabled me to accurately determine the exact points to which stocks or commodities should rise and fall within a given time. The working out of this law determines the cause and predicts the effect long before the Street is aware of either”..
William D Gann
…..“I measure what's going on, and I adapt to it. I try to get my ego out of the way. The market is smarter than I am so I bend.”..
Martin Zweig
.."October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February."..
Mark Twain
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
Nobel Laureate for Economics Paul Samuelson
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Bernard Baruch
