CIE & BCEI are a couple of formerly beloved energy stocks either flirting with or recently giving up the important 1.00 level (often a kiss of death once crossed below). Financials as well as junk bonds (JNK, HYG) rallied earlier this year in line with crude oil in hopes/expectations of an abatement in the defaults in the energy sector.

This most recent bear market (crude exceeded a 20% drop yesterday) can’t be good for financial companies (lenders) & high-yield bonds with significant exposure to the energy sector yet XLF (financial sector ETF) is only just starting to roll over after stalling at major resistance over the last couple of weeks. Both XLF/FAS as well as JNK or HYG might be added as official short trade ideas soon although I’ve listed some potential swing targets for those that might want to establish a partial or full position before them.