In
the last post we looked at two U.S.
integrated energy giants, Chevron Corporation (CVX) and Exxon Mobil Corporation
(XOM) which have over the past 36 months been building huge bullish ascending
triangles.
Now
a look at the US
10-yr T-bond yields at 1.76 % (divide the scale by 10) plotted over the Select
SPDR Energy ETF (XLE) displays two conditions. There is high price correlation
and there is high cyclic commonality. Clearly the XLE is breaking up and out of
a large bullish symmetrical triangle and so it is reasonable to assume the US 10-yr T-bond
yields have nowhere to go but up. Long bonds are for fools so look for the iShares
Barclays 20+ Year Treas Bond (TLT) $120.35 to break down through the 200 day MA
down the at least $109 to complete a huge head & shoulders top.
2 comments:
Hi Bill,
What's your take on the XEG?
Shawn
Hi Shawn
The XEG is a go-to place
Bill C
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