‘Bloody’ describes US energy sector stocks last night

XLE sector holdings a field of red

XLE is a SPDR sector ETF. I use it as snapshot/indication of how the US energy sector is doing. According to fund description,

Energy companies in this Index primarily develop and produce crude oil and natural gas, and provide drilling and other energy-related services. Leaders in the group include ExxonMobil Corp., Chevron Corp, and ConocoPhillips.

This was the fund’s performance last night. At a loss of 2.36%, it is second best loser behind financial services down 2.46%.

The sector heatmap is dramatic – a field of red.

XLE sector heatmap showing price performance of constituent energy stocks for the day 03 May 2016

XLE sector heatmap showing price performance of constituent energy stocks for trading day 03 May 2016 | Source: SPDR Sector Select


WTI confluence of resistance from $44 – 47

Stocks are likely to be responding to this chart of WTI. If that downward equidistant channel is valid, then WTI’s rally from February was merely a retracement in a big downward trend that remains intact. This is what I thought about that WTI bottom. Without a big bullish reversal pattern, it is not unthinkable for WTI to revisit $35 and then subsequently early-2016 lows. A good narrative here ‘U.S. oil industry bankruptcy wave nears size of telecom bust‘.

WTI weekly chart February 2014 - present

WTI weekly chart February 2014 – present; confluence of resistance from $44 – 47

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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