ERX Going Just As Planned

This morning at 10:30 I showed you ERX (Energy Bull 3X) which is a long equity position that is currently down -4.5%, I also showed you what I didn't like about the position going forward a bit longer term which also fits well with this post from the weekend on the COT of commercials as well as how I planned on getting out of the position at a profit.

So far, so good.

ERX as of the close-you might want to look at this morning's post as well.

 On the daily chart what I didn't like was the upside breakout of the channel as well as the COT data, but that doesn't mean take the loss when there's an opportunity to make a gain.

 The intraday price action of ERX was perfect for a positive divergence and that's what was there earlier and what continued throughout the day.

 The 1 min chart leading toward the close.

 What is most important is the 30 min chart positive and leading here. You might look at that chart and wonder why I am looking to exit the trade...

That is answered here on the 4 hour chart with a deep leading negative divergence. This is what understanding the different timeframes is all about, the shorter term timeframes tell me I can probably exit the position at a gain, the longer term chart tells me that's probably the best idea although I want to always watch as the position develops for any changes, but strip away the noise and the 4 hour chart which is short on detail, long on trend tends to agree with the COT data of what's been going on in the oil/energy sector.

By the way, I always try to confirm, this chart may look very similar, but it's a totally different ETF with totally different volume (supply/demand).

XLE/Energy looks almost identical.