ENERGY STOCKS BREAKOUT?
The energy stocks are trying to break out of their two and a half month consolidation, and through a major resistance level. This could mean that the daily cycle decline in oil has been aborted early and the rest of the drop into the intermediate cycle low has been terminated.
If oil has finished its correction and energy stocks are ready to resume their rally, it will add even more momentum to the stock market.
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GUSH morphing into uptrend.
Gary,
Yesterday’s large uptick in oil looks like a trap on many levels. The entire energy complex is down and resuming their downtrend. Today’s EIA report didn’t help either.
What is making you so bullish about oil?
I’m bullish on everything. Clearly everything is now in a bull market. In powerful bull markets timing isn’t critical. The bull will correct any timing mistakes. Any long position will eventually turn a profit. One could buy oil or energy stocks at the very top of an intermediate cycle and still end up making very good money as long as they hold onto the position and allow the bull to work.
I expect by the end of the year oil will be at or above $70 and maybe above $80.
Yesterday’s OPEC and Saudi price optimism turns into today’s stock pile increase in US.
But it seems like short term noise… the overall trend in oil, as Gary says, seems to point to up.
The question is will we see $42 or 200 day MA or not in this current correction.
all up and headed north
biotech seems lagging in upward momentum.. on a relative to broad market basis
What about this oil chart, Gary?
http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/07/11/20160713_EOD1.jpg
seasonality on oil is aweful from here on.
That’s not a seasonality chart.
Oil Seasonality = http://www.seasonalcharts.com/future_energie_crudeoil.html
Thanks
Biotech losing steam, getting hit. Contagion transmission to other sectors? Time will tell.