Energy stocks have performed very Well but now look to be extremely over bought with over 90% of energy stocks having a bullish point and figure chart. I expect we will see some type of pullback here which could last 5-20 days depending on the speed of the pause/correction in prices. Looks like energy stocks could easily fall back to the 50% mark on the bullish percent chart.
Energy Bullish Percent Index – Daily Chart
XLE Energy Fund – Active Trading Signals
Active Trading Conclusion:
Gold and silver in my opinion should be moving higher because the board market is so over bought and looks like it’s about to have a sharp correction. Money has been slowly moving into gold and silver the past 2 weeks. If the broad market continues to sell off here we could see gold prices rise nicely and retest the $1000 mark.
