Weekend 10/21/19
Regular readers are aware we have been expecting a low in energy prices by mid November. Looks like it is already happening.We have thee Economy ETFs ranked by their last week performance. Energy service which has lagged all year is number one. This is the kind of low we have been looking for.
Weekly Energy Service XES has not turned but look like it is in early stage of a bottom.
RIG and PTEN are as cheap as they ever get and have similar patterns.
XLE
XLE made a higher low amid all the negative news on energy. Again this is what we are looking for.
Crude Oil
Focus on the red line that is the long 200 day MA. It has turned up above the other three, this is a positive. It appears the MAs are converging, now we need a move up in the other three.
Transports
Transports are finally making a new high confirming the new highs in Industrials, ie, a Dow Theory buy signal.
It appears that the long correction is ending.
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