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Trading a Buy Setup in Crude, XLE, and XOM
The energy sector, in addition to high fuel prices, have been in focus most of the year until we finally saw a bit of a reprieve this summer. However, I’m betting this break won’t last long, as I’m spying buy setups in the energy space along with a buy setup in a key energy stock, XOM. Let’s discuss the whys and the how beyond how to trade these setups.
Futures Markets Update – The August Reset
After trading to a recent swing high of 4327 for a test of the 200 day SMA we now find ourselves back at the starting point of 4137, the August monthly open. As discussed previously, I do look for the balance at 4120 to trade and for that to tell us what we need to know about who is really winning the fight. Stay tuned for J. Powell Friday morning. All attention appears focused there.
Daily market update – countertrend or uptrend?
The Voodoo Fireline isn’t just the most important level of all the various Voodoo Lines, it’s also the spot I’m watching to decide whether this market is turning back down or consolidating in an uptrend.
A volatile week recap
Risky week coming up with Fed at Jackson Hole. Let’s review a couple of significant red flags you should know before Monday.
Expecting Heavy Showers
That’s right, I’m expecting another selling event into the last week and a half of August left. In this video I give reasons why — based on a few interesting indicators showing me that /ES at 4100 and lower wouldn’t be surprising at all.
OXY and the power of technical indicators
Shares of OXY were up 10% on Friday, and with the help of our Voodoo Roadmap we were able to be in well ahead of the news. Let’s look at the setup and what that might mean for prices further down the line.
August Expiration
Bears have had several opportunities to step in and shift the trend but haven’t been able to do it. If that’s the case again tomorrow, we may see SPX move into the psychological value of 4300.
The Daily Timeframe & FOMC
The uptrend in price and macroeconomic trends point the way to the upside. Regression to the Mean aka Buy the Dip is the game plan.
FOMC minutes time again
In this video, we look at today’s FOMC minutes and the whiplash market reaction. We have been getting huge daily swings in both directions which makes it very hard to get on the right side of a trade. This market is a grinder and will take out shorts as well as longs so we must be careful. We look at levels and where we might go in this video as well as upcoming events to be aware of.
Patience, Grasshopper
Sideways grind at these levels but I do have a plan. It requires neutral for now with patience and a plan to strike when the opportunity arises. Levels in tonight’s mid-week market update.
