XBI, XLE update 04/17

XBI: It has been a while since I revisted this ETF and I’ve greatly enhanced and detailed the EWT count. What this results to is major-5 of Primary V is now underway to around $103-$105+. The whole advance off the February 2016 low counts as an excellent impulse wave, with nicely subdividing smaller waves and price has now most likely completed (black) major-4 as a flat. Major-2 was a zigzag. Note how price has held long term support. Longs can be initiated if not already long, and if so desired, with the aformentioned target and a stop just below $82.50.

XBI weekly

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XLE: Moved in the entire opposite direction than I thought it would in my last update. Yes, this can happen as I don’t have all the correct answers all the time. And remember: we’re wrong till the market proofs us right. We’ll I was clearly I was wrong indeed. So here we are. There are two possibilities: either major-b of primary C is underway and will top out soon, or major-c of Primary B is subdividing (red alt:a, b) and it should target $86ish. See red Fib-extensions: c=a to c=1.618x a. Given that the market is most likely already in Major-5, I think we should give credit to the alternate count. Only a break below the yellow “a?” low at around $66 will disproof this more Bullish count. One could place a stop there if so desired when long. That’s only less than 10% below current prices and often a very acceptable percent-based stop-loss level.

XLE