XLE Bear

Long Term Bearish on XLE

The deflation narrative is now the contrarian narrative. However, XLE the SPDR Energy giant is signaling a hefty drop on the 3M stochastic RSI. This signal has been produced 3 times in the last two decades leading to multiple 50%+ drops in value of the fund.

The 5-wave impulsive move looking for a similar 3 wave a-b-c corrective wave down to it's most recent corrective wave.

The yield curve un-inversion (zoom in on a 10Y/02Y) is signaling the opposite of the media narrative of higher rates for longer (pending Trump).

However, I believe bond bulls are preparing for economically stormy waters in equities. XLE appears to reflect this.

Considering Jan '27 70P's for wave A with a PT of 55-65$.

Not financial advice!
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Proverbs 14:12 There is way that seems right to a man, but it's path that leads to destruction.

Psalm 119:105 Your word is a lamp to my feet and a light to my path.

Acts 4:11 This Jesus is the stone that was rejected by you, the builders, which has become the cornerstone.