08 June 2016 at 20:53 GMT
Markets are getting stretched at some areas and currently the Energy sector ETF XLE looks interesting going forward. When this rally started all but one parameter was in place for a major reversal, the downtrend off the 2014 should have lasted longer then it have down so far or perhaps did. We are coming into an important area from a cycle perspective from now and early next week, which is a hurdle that needs to be cleared going forward.
A short term trade on LUPE:xome (a Swedish oil stock) was closed this week as we had ran into what should be interesting resistance and as with the XLE:arcx an interesting time alignment is reached around the coming week-end. I have been expecting an end to the cycle at around this area for some time now.
A similar structure as in LUPE was seen in LUMI:xome before it tanked in May 2015.