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Thursday, January 15, 2009

Watch crude oil and XLE

Crude oil is being pulled both ways: the shrinking economy, or the shrinking dollar.

 

Crude is near the low it set in late December.  If it wants to reverse, now would be a good time, as it would make a nice double bottom.

 

Meanwhile, XLE has basically been in a trading range since October and has not changed much.  It’s waiting for something. If crude should reverse, XLE may go back to the September level and that would be a very nice island reversal.  We can’t expect the oil companies to go the way of the big banks, do we?

 

 

http://trendmester.blogspot.com

 

 

 

 

 

 

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