Weekend April 9, 2017
XES exhibits a reverse head and shoulders formation which is now re testing the breakout above the neckline. This is a positive.
The chart of energy producers looks a lot like energy service above. And it took looks to be re testing a break out level.
XOM and CVX are the two largest components of the XLE. The problem with XOM is that it
simply is not producing enough cash to finance exploration, production, and pay the dividend.
CVX chart looks much better as a result.
One would think HAL and SLB would be included in the XES ETF, but they are in the energy producers XLE!
Odd in that they are not energy produicers. But both are in uptrends and correcting now.
The advance decline line is still strong but flattening, another sign of a correction in progress.
Money flow bounced big to the upside this week. Perhaps this consolidation is finally ending with a look to the upside.
Bottom Line We are bullsih on energy prospects, the markets will prove one way or the other in the next two weeks.
Bugatti, a re incarnation of the famous French firm, as re started by F. Piech of VW Porsche fame. The goal was to build the most powerful cars in the world.
Now the Chiron produces 1,500 bhp via four turbochargers blowing into 16.4 liters of W 12 engine. three million a copy. Dan Neil at the WSJ estimates a 285 mph top speed which requires lowering the car to three inch ground clearance. Bugattis average 800 miles drive per yeark, this is an art form in private garages.
Meanwhile in Modena, Ferrari announces its most powerful car ever the 812 Superfast. With 6.5 liters and 800 bhp ( no turbo) it has no doubt already sold out the model run.
The ability to sell such niche items speaks to massive market confidence.
The Market Perspective bases its information on techniques and sources that have been found to be reliable in the past, and The Market Perspective tries to base opinions on sound judgment and research, however, we do not guarantee that future results will match past performance and no guarantee can be made that advice will be profitable. The Market Perspective accepts no money for stock recommendations and is purely motivated by its own research in recommending any stocks. Put another way, the responsibility for decisions made from information contained in this letter lies solely with the individuals making those decisions. The editor and persons affiliated with The Market Perspective may at times have positions in securities mentioned. Nothing contained herein represents an offer to buy or sell securities. The Market Perspective encourages investors to be diversified, and to maintain sell stops and risk control over their valuable investment capital. No guarantee can be made to the accuracy of text or charts.