Bulls are in quite a pickle here. On one hand, Energy has been one of the best performers of the year. On the other hand, how can Bulls get uber bullish when the high cost of fuel is stripping all expendable income from the consumer? I think Energy has to come in some here. My favorite way to play energy weakness is to short Exxon Mobil.

Exxon looks like it might have put in a huge triple top here. I’m watching the triangle develop for an opportunity to get short. (XOM: 68.51 0.00%) is currently nearing oversold, so I may wait for a bounce before taking a position.

Another way to play any weakness in oil is through (DUG: 49.57 0.00%). This is the ultra-short oil and gas fund. It has been very very volatile, but it does appear to have an uptrend developing.

And due to moo’s timely comment, I’ve included (NOV: 17.86 0.00%) as a short candidate. It is sporting an almost technically perfect short setup.