ENERGY STOCKS had so many sell downs today from over-bought call it an $ERY buy


Energy stocks, after a decent run for a massive sector, virtually got hit with selling across the board today.

Of those I follow, WFT, PXD, NOV, DO, NBR, XOM, SLB, and RIG all had short-term sell signals.  Given how strong the sector has been of late, this is more likely a chance to take profits rather than a time to enter shorts.

It should be noted, however, that equipment bellwether Baker Hughes (BHI) hardly rallied with the sector, held no gains, and now appears to be heading for new lows, making it a prime short candidate when the overall market gives a timing sell.

But in case this is the very beginning of a new swing sell, it can be played with ETFs — shorting XLE, OIH, or with 3X leverage, buying ERY on the open tomorrow for scalps with tight stops.

(click on the chart for a larger image)



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