Earlier this year, I was a big fan of energy shorts. Simply stated, the trades rarely worked, and a couple of months ago, I pretty much threw my arms up at the whole sector. I’ve got to say, looking at the continuous contract of crude oil, the massive top might never complete. It got close, but no cigar.
This is reflected in USO, which actually broke above its descending trendline many weeks ago, and it is simply augmenting those gains today.
Within the stock sector itself, the ETF symbol XLE has blasted above its long-term resistance line.
So, too, has oil & gas fund XOP ripped higher, having conquered its resistance many weeks earlier.
The bottom line for me is that this is a sector I am not going to touch!
