Energy Bulls Are Waiting

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The energy sector has been the top performer this year, but no one seems to care.

The setup has been building for some time now.

Commodity Trading Advisors (CTAs) are holding one of their largest short positions in Crude Oil in over a decade. 

That’s a historic bearish sentiment.

When positioning gets this extreme, the unwind can be just as aggressive. 

Any shift in sentiment or a supply shock could set off a fierce short-covering rally.

The Large-Cap Energy ETF $XLE is probably the best equity vehicle to express a bullish thesis.

XLE has been coiling at a crucial resistance level for the past three years in the context of a 17 year base.

Buyers are gradually absorbing all the overhead supply at this key zone.

If and when XLE breaks above 100, then it will be time to get long energy.

JC and Jason are hosting an exclusive commodities event this Thursday at 1:00 p.m., breaking down what’s next in the space. Reserve your spot here.

Alfonso