XLE has zigged while CL zagged. I see a gap: crude already trading at a level that could justify XLE down in the $85 area, and crude looks like it’ll drop to $62 per barrel if it makes a new low.
Risks for crude prices: deregulation under Trump, peace with Russia ending sanctions (my guess is oil and gas sales would be resumed first), and the ongoing slowdown in major economies from Asia to Europe.
