Energy...

Last week we were in the ERY trade, however  warned almost every time I posted on it that it would be a short lived trade. I think everyone who was in the trade was able to get out in time, at least most of you who email me frequently.

So I'll show you both ERY (Energy Bear leveraged EFT) and ERX (Energy Bull leveraged ETF) to give you some idea of what I was talking about with Energy looking better ( believe I posted XLE charts earlier today as well).

ERY-Energy Bear

 The 15 min 3C chart shows the the end of the previous cycle and the start and stage 3/4 of the current cycle (stage 3=distribution/stage 4=decline). We wanted to be out at the second red arrow.

 Here's the 10 min chart confirming distribution

 The 5 min chart shows more detail INCLUDING a head fake new high n the red box with a deeper 3C negative divergence. You hear me talk about head fakes a lot, it' because they happen a lot and as you can see, they tend to happen right at the point of reversal.

 Here's 1 min chart confirmation  and a slight bump up in 3C, maybe we get a gap down in energy tomorrow, which should be a good place to look at buying if you want exposure to this industry group.

ERX Energy Bull

 The hourly chart is very bullish

 As is the 30 min 3C chart


 There's more detail on this 15 minute chart of ERX showing another negative divergence with a head fake making new local highs before reversing down.

 The 5 min hart and the typical lateral range that accumulation occurs within so frequently, also a leading positive divergence.

And the 1 min chart, showing a little brief weakness going into the close, again hinting at a possible gap down in the sector tomorrow a.m. or some early weakness.

All in all, Energy looks to be coming together well.