Pulled Out XLE

I'm out of XLE.

I'm gonna be honest, I pulled out the contract because I panic sold, I exited in between my meetings when I saw the price go down to $54.40 and didn't even give it a chance to recover. I did this because my contract had gone down to $0.90 which was still positive from my bought in price $0.67, I just didn't want to risk it going lower. In the chart below I've highlighted the drop observed before 10:00 am and the closing price above the resistance defined. So, the verdict is that XLE did recover.

Thoughts on an abrupt exit

I almost immediately regretted it and felt like it might've been a mistake, especially after seeing the price creeping back up throughout the day. It almost felt like an Irish goodbye to me. I think that while I made sure I didn't lose money, I made the mistake of exiting before 10:00 am and didn't allow the market to settle in for the day. Although looking at the chart, I probably would've panicked the same way between 10:30am and 11:00 am. Looking at the closing price and after hours behavior, it does make me feel like I probably will wish I hadn't exited, though I need to be realistic as well. Realistic in the sense that the theta decay was aggressive, where yesterday it was $5.94 per day and today it was ~$6.30, this would have been around $7+ tomorrow. At the same time, something I said at the beginning was that I'd do a post review and move on, so I can't dwell on this for too long.

I know that the 15% tariffs imposed played a huge role in today's opening, which is fair, I think perhaps others like me saw that as a "let's pump the brakes" and sold as well. It's a fair concern.

I will do a post XLE review through the journey on another post, it will be a deep dive, more to come. In the meantime, let's look at the next prospect XLI.

In the above, we can see that today February 24, 2026 – XLI opened within the defined channel but managed to stay above the resistance and even closed above the ceiling. What does this tell me? It tells me the resistance is being tested once again, and it is interesting to me that the RSI remain in the high 50s. We can expect a positive tomorrow for XLI, which then will determine what I do on Thursday. Assuming tomorrow we go even higher and RSI reaches 70 mark, then it will tell me that there will be a slight pull back, in which case, I'll make my entry for a discount like I did for XLE.

I think it was interesting to me that yesterday XLI was a bit down while XLE seemed to be thriving, where the opposite occurred today XLI was up by ~$2.16 – It seems that many investors shifted their energy sector (and other) investments into industrials. This shift appears to be normal, I'll try to understand more on how this happens to understand when to shift too. It may be crazy but I'm thinking of this as the great migration (yes, the animal kingdom migration). If I can identify a pattern, it will help me better understand how sector shifting occurs and what gets affected.

It's interesting understanding different sectors, it seems like I'll have a lot to cover over the weekend. Although I will be traveling this weekend and beginning of the next week, I still will find some time to educate myself on this and try to write about it, even if briefly. Today was interesting, not mad at it, it feels a bit relieving to be out of XLE as I was getting a bit desperate for the $56 price, and while it didn't happen for me, I still gained from this trade as I took initial investment before and made a small profit by selling the remainder at $0.90 today.

While my exit was abrupt, a 34% profit is still a win, and my capital is now preserved for a cleaner entry into XLI. As mentioned in an earlier post, it’s about how long you can stay in the game, today also proved that for me by not losing any money from my initial investment and taking 34% profit.

Good momentum :)