Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n An index is generally overbought when it registers above 80 – meaning 80% of the stocks in the sector are trading with bullish patterns. An index is oversold when it drops below 30.<\/p>\n Here’s how the Energy Sector Bullish Percent Index (BPENER) looked on Friday…<\/p>\n (Click here to expand image)<\/a><\/p>\n The red arrows on the chart point to times when BPENER rallied above 80 and then turned lower from overbought conditions. That action generates a BPENER sell signal. It’s usually a good idea to avoid buying energy stocks in this situation.<\/p>\n Here’s how those arrows coincide with the action in Energy Select Sector Fund (XLE)…<\/p>\n (Click here to expand image)<\/a><\/p>\n Following the BPENER sell signal in January – XLE fell about 10% in two weeks.<\/p>\n XLE suffered a similar decline over the span of one month following the March sell signal. A similar decline from the current overbought situation would have XLE trading near $50 per share over the next two weeks.<\/p>\n Of course, there’s no way to know for sure how this current sell signal will play out.<\/p>\n It’s a pretty good bet, though, that the immediate upside is limited. So, there’s no real urgency to jump into the energy sector right now.<\/p>\n Traders should give the recent BPENER sell signal some time to play out before buying into oil stocks. We’ll likely have a chance to put money to work in the sector at somewhat lower prices in the weeks ahead.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n In today’s mailbag, Jeff Clark Trader<\/em> member Paul thanks Jeff for bringing him back to reality…<\/p>\n Jeff, you’ve made me a believer. I listen to CNBC all week while following the market and was ready to start selling today until I read your article<\/a>. I stopped selling and started analyzing. I’m committed to look at daily price charts before selling – not commentators. Thanks for bringing me back to reality.<\/p>\n – Paul<\/strong><\/p>\n<\/blockquote>\n And here, Jeff Clark Trader<\/em> and Delta Report<\/em> member Sudhir thanks Jeff for a recent trade recommendation…<\/p>\n Hi Jeff, thank you so much for the trade we made over the last couple of months. So, when you asked us to sell the June 18 expiry options, I sold them, but I at the same time I bought some new options for the July 16 expiry. <\/p>\n The last few days have been fantastic for these new call options. A very big thank you for pointing us towards a great company stock.<\/p>\n![\"\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202106\/20210628-mm-01_jmu492.png\")
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