Dan Passarelli, CEO - Market Taker Mentoring

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The market overall didn't fare super great today. Not the end of the world, but the energy sector really got hit pretty hard. We can talk about the fundamentals. But what I want to talk about here right now are specifically the technicals.

If you look at a pattern recognition sort of scenario on the six month chart here; we've seen a couple of times where the energy sector (and I'm measuring that by XLE; which is the Select Sector Spider Trust Energy ETF) where it's kind of gone up this wall of worry a little bit and as I like to say sometimes: up the stairs and out the window. Where we sort of climb. Climb. Climb. Climb. Climb. And then boom. Falls out of bed.

Then climb, climb, climb in a much bigger fractal. And then after climbing, boom, falls out of bed. We saw this on a smaller fractal version of that. And where're we right now, I don't know, we could be seeing this exact same pattern play out yet again. Or it could be a dip. So look, tomorrow is going to be a pretty pivotal day when it comes to the XLE. I'm going to be watching it closely. If we rebound, this might just be a small little pullback and we could maybe place some high volatility by selling some put credit spreads in there.

However, if it ends up heading lower, it might not be a bad long put purchase. Either way, we'll keep an eye out. I hope that helps.