21Jun1:17 pmEST

Crude, Where's My Bottom?

Once again, the small cap weakness coupled with persistent selling in the energy sector at-large seems to be slightly outweighing biotech and select tech strength today. As a result, I am not forcing in new longs for what is an increasingly divergent market. As an aside, it is interesting to see the solar outperformance, however, with RUN VSLR having terrific runs of late an now FSLR getting with the program.

Still, when it comes to energy proper it appears as though too many are looking to make the big call for a bottom rather than respect the ongoing downtrend. 

Mind you, I am more than willing to seek out a counter-trend relief rally long. However, we simply must see some actual evidence of buyers stabilizing the space before considering a long with any type of size. 

To make matters worse, the reversals yesterday in the OIH XLE XOP ETFs, all for energy-related stocks, are negated today with the post-inventory report selling. 

As a result, a new batch of bottom-fishers from yesterday (denoted on the XLE ETF daily chart, below, with yellow arrows) may need to get flushed first before we can start the whole process over and look for that relief rally. 

Tweets Versus Eats Come on, Kryptonite!

 
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