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Rick Pendergraft's  Instablog

My passion for the stock market began in high school when my economics teacher entered me in an investment competition. Following my education I spent several years in banking before making my way to Schaeffer's Investment Research, where I learned the value of sentiment analysis. In the summer... More
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  • Energy ETFs Channeling Higher 0 comments
    Nov 5, 2009 09:09 AM | about stocks: XLE, ERX
    Each night I run a custom scan of all publicly traded US stocks. I am looking for short term opportunities- both bullish and bearish. There a number of factors that go into the scan with several oscillators, increasing volume and so forth. Over the last few days, I have received bullish signals on several energy ETFs. Tuesday night there were bullish signals on the ProShares Ultra Oil and Gas Fund (DIG), the Oil Services Holders Trust (OIH) and the SPDR S&P Oil & Gas Exploration & Production Index (XOP).
    Wednesday night I received bullish signals on the Energy Select Sector SPDR (XLE) and the Direxion Daily Energy Bull 3x Shares (ERX). 
    After receiving the bullish signals I started looking at the charts more closely and took note of the upward-sloped trend channels the energy ETFs have been in over the last five months or so. Here are the daily charts for the XLE and the ERX. I have also noted the points at which the stochastic lines have made bullish crossovers in the last six months or so.

     

    If the pattern holds true again this time, we should see a nice rally in energy stocks over the next three weeks or so.
    Disclosure: no positions.
    Stocks: XLE, ERX
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