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Although the market has been showing us signs of weakness throughout the past week, there is still cause for being bullish on the market overall, especially when you zoom in to certain sectors of the market. In every bull rally, there are pullbacks, which are actually healthy to the overall trend and its ability to move higher.
When you remember that the big boys are trading much like we are, it is important to realize that when they take profits, their postion sizes are large enough to move the rest of the market as they do. Once you realize this, it is easier to calm your nerves as the market takes a couple days to get back on its feet.
However, despite this profit taking that seems to be concentrated in the tech sector, there are still areas of the market that seem poised to make a move higher. Once of these sectors is oil.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
The oil and natural gas area of the market has been under somewhat of a lull at a key level of support, especially when looking at the price of oil as a benchmark for the rest of the sector. After pushing off the 75-76 level, the price of oil looks ready to continue its march higher.
One way we can look to play this bullish move on oil is the XOP, which has also had itself quite the bullish move over the past month or so. If oil prices can…
Watch the full video at WEALTHPOP.com