Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Dec 22, 2020
Oil and Energy SPDRs Receive Bearish Signals

Oil and Energy SPDRs Receive Bearish Signals

The oil industry and the various other energy industries associated with oil production have been on really nice rallies over the last two months. The gains seemed to be propelled by vaccine news and the hope that the world economy would get back on track sooner than thought.

The Energy Select Sector SPDR (XLE) gained 56% from its October low to its high a few weeks ago. The fund quickly shifted from oversold to overbought and it moved above its 52-week moving average during the rally. Unfortunately the weekly stochastic readings made a bearish crossover last week and appear as though they may be headed out of overbought territory—a possible bearish signal.

The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) experienced an even greater gain, rallying 66.9% from its October low to its high two weeks ago. The XOP also saw its oscillators move from oversold territory to overbought territory during the rally and it also moved above its 52-week moving average. In this case the fund hadn’t been above the moving average in over two years.

Like the XLE, the XOP saw its weekly stochastic indicators make a bearish crossover while in overbought territory. We see similar instances in June and January of this year and back in April 2019. In all three of these previous instances, the XOP dropped considerably in the months that followed. The same pattern can be seen on the XLE weekly chart.

I imagine if you went through the weekly charts of the stocks that are holdings in these funds you would see a number of them following the same pattern.

Looking at the Tickeron Screener, 24 of the 26 stocks in the XLE are rated as a “sell” on the Tickeron Scorecard with only one “buy” and one “hold” rating. In the XOP, 35 of 42 receive a scorecard rating of a “sell” while five are rated as a “buy” and two have “hold” ratings.

If we look at the fundamental and technical indicators for the two funds, the XLE has one negative and one positive indicator on the fundamental side. On the technical side it gets two positive indications, but five bearish ones. The XOP doesn’t have any positive indicators from the fundamentals and it has one negative. On the technical side it has two bullish signals and four bearish signals.

The Tickeron comparison between the two ETFs shows how each fund ranks against one another and against other funds. We also see that there have been a number of signals generated on the funds in recent weeks. 

Related Tickers: XLE
Related Portfolios: ENERGY
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.