Chart Request: Energy Select Sector SPDR ETF (XLE)
Posted on June 21st, 2007 in Chart Reading, Stock Market
Duru wanted me to take a look at the Energy ETF (XLE). He asked:
How about a look at XLE? The stochastics have also not quite generated a sell signal, but interesting to note how volume dried up going into the recent all-time highs, produced a few dojis, and ended with a huge pick-up in volume on the 2.9% drawdown… Seems like some kind of top is being put in?
The volume on the last push higher does seem ominous but I think thats only a concern in the short term. OBV still looks strong and the March uptrend is still intact. If I start seeing lower lows I might get a little worried about energy but for now the bulls are still in control.
This post has 3 comments
June 21st, 2007
Mike, does volume analysis on an ETF make sense?
There are so many games to play using ETF exposure to offset specific stock exposure that the ETF volume may be nothing more than a side effect. I’ve also noticed that ETFs are subject to large swings in volume from day to day, more so than most stocks that I follow. (I need to run some statistics on that.)
June 21st, 2007
That’s a question I get often and honestly, I don’t know the answer. It may depend on the ETF in question. In some cases the ETF is the dog and in others it’s the tail.
June 21st, 2007
Thanks, Mike. I guess my oil-sector bullishness can rest easy for now.