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XLE, Natgas, DIA and WTI signalling something?

4 charts that says something is brewing. If the signals are true, XLE is a leading indicator which we will see some WTI, index moves in the near future.

 

Exhibit #1 – WTI stuck at 11-week level

Question: Consolidating or distributing?

WTI stuck at 11-week level

WTI stuck at 11-week level

 

Exhibit #2 – Energy sector XLE is worst performer YTD

Sticking out under-performance.

XLE ETF worst performer YTD

XLE ETF worst performer YTD

 

Exhibit #3 – Natural Gas is crashing

Maybe the correlation on this one is not clear enough – compare the highs and lows. I see it there just that Natgas moves are magnified.

Natural gas is crashing

Natural gas is crashing

 

Exhibit #4 – Put this ‘old’ correlation in the picture

Maybe that old correlation does not work anymore. If you believe it still works, XLE is a leading indicator.

XLE appears to be leading indicator

XLE appears to be leading indicator

Lastly combine this with what I observed about AUDJPY in an earlier article today.

 

 

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Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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