Since a small minority of Slopers don’t enjoy posts dedicated to asian transsexuals, I thought I’d mix things up a bit and point out something interesting: I’m very gung-ho about energy short positions, as you know, and I contend that the overall energy stock sector (represented by XLE, shown below in blue) is going to “catch down” to oil’s crumbling price sooner or later.
Just a simple chart to share: the emerging markets ETF, shown below, has what I consider to be an important line at $35.64 – – – that’s a mass of overhead supply (tinted in magenta) versus an inverted head and shoulders pattern (tinted in green). Thus, the battle line has been drawn. If we slip clearly above it, that could help power global markets (and really accelerate the S&P 500 to heights never seen before). On the other hand, if we encounter exhaustion at this point, all that overhead supply is going to act like a lead wall to further gains.
Here are seven ETFs of interest and a few thoughts on each…….
First up is the agricultural commodity ETF, which has a decent basing pattern. This isn’t very heavily traded, and it isn’t a big percentage mover, but it also isn’t prone to shocking moves, either.