One of my favorite setups is when you have a major “top” formation, that doesn’t actually turn into a reversal pattern and top for the market.
A recent example was in shares of Disney.
If you guys recall, this one looked like a major top, sentiment was down in the dumps, and we were buyers at 80.
Here we are with Disney at 120 and hitting new 52-week highs.
I gotta tell you, this setup in Energy looks exactly like that.
Look at this chart below – it’s got all the hallmarks of a top: [Read more…]