Happy Chinese New Year! Today is the first day of the Chinese New Year and it’s the year of the Rooster. This celebration actually started on Friday, New Year’s Eve and goes on for a couple of weeks. It is also called the Spring Festival. I talk about this more in a previous post.
The stock markets in China were closed on Friday and won’t open again until next Friday. The Hong Kong Stock Exchange is closed on Monday and Tuesday.
Today we look at the Energy Select Sector SPDR ETF (XLE) and ask whether the energy sector has hit the wall.
The XLE is one of the most active industry sector ETFs with a 50 day moving average of 95 million shares. It tracks a market-cap weighted index of US energy companies in the S&P 500.
In the big decline from the peak in June 2014 to the low in January 2016, XLE smashed thru a major uptrend line from the 2002 low, in July 2015. It pulled back to it last November but then quickly fell away.
It has had a big move up off the January low, but running into significant resistance at 72.0. It has not broken down yet. Watch for consecutive closes below the 10 week ema and then for the 10 ema to cross below the 21 sma. Look at September 2014 and June 2015 for good examples.
Weekly April 2011 – Sept 2016
The top three holdings in the Energy Sector ETF are Exxon Mobil (XOM) at 18.65%, Chevron (CVX) at 14.81% and Schlumberger (SLB) at 8.83%. I’ll start with Exxon Mobil. Continue reading
In the Asia Update video below I review the China’s Shanghai Composite Index, Hong Kong’s Hang Seng Index and the China Large Cap ETF (FXI). FXI is designed to have almost all of its assets devoted to stocks trading in the FTSE China 50 Index.
The FTSE China 50 Index is made up of large cap Chinese equites that trade on the Hong Kong Stock Exchange. Therefore the FXI more closely resembles the Hang Seng Index.
This week I also review 2 very actively traded Chinese ADRs, Alibaba (BABA) and JD.com (JD). I’ve created a list of 8 actively traded Chinese stocks and plan to review 2 each week. Next week I will look at SINA and VipShop (VIPS).
Also in today’s video I look at India’s Nifty 50 and Japan’s Nikkei 225.
Happy Father’s Day!!!
On this U.S. Open Championship weekend I thought it appropriate to discuss golf and how it relates to trading. I can think of at least 5 ways that golf can help your trading…there are probably many more. Continue reading
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