Tuesday, May 2, 2017

May 2 - Energy at a critical inflection point

I sold XBI today after it broke lower and XLF mid last week.  I am not excited about the indexes stalling out here when previously we moved higher like post Trump, Feb.  We got a pop after the French election but absolutely no follow through.  This is concerning.  SPY/ DIA stalled at previous highs and IWM made a nice move but has slowed down.  The only index which is definitively bullish is tech.

Overall markets aside, I would continue to be very bullish on energy but I don't like the seasonality ahead combined with the indexes slowing down.  Generally I will be increasing cash position and maybe lightening up energy depending on how things go.

No comments:

Aug 25 - Re-entered (again) GLD short, long LVS, AMZN, NFLX, SHAK

I have been stopped out twice in last few weeks trying to short GLD.  I have a pretty sizeable position of Nov/ Dec GLD/ GDX puts. Also ha...