You know I’ve been reticent about drilling for oil in this environment. I’ve advocated to sell some oils and lock in gains. However, every once in awhile The PPT shows me something I wouldn’t normally see on my own. In this case, there aren’t any notable oversold signals yet, or momo screens to reference, but a chart.
That’s right, I am about to cite a chart.
Bear in mind, my charts are smart, intuitive, not idle and lazy like the ones you prefer to draw lines on.
What is this nonsense that I present to you above? It is the ‘hybrid’ score of the entire oil/gas drilling and exploration industry, which is, essentially, a combination of technical and fundamental factors. On top of that, several other things comprise the hybrid score, such as intra-day currency, commodity and treasury moves. In other words, our sub-rosa is somewhat complicated and proprietary.
Over the past week, dozens of oil stocks are down double digits. This sector has pulled back to the point that it has become buyable, especially if you’re banking on a spring revival in oil–ahead of the driving season. Looking at the hybrid score, you see we are now at the low end of the trading range for the past 6 months.
Which stocks do we want to target?
We don’t want outliers. We want to buy names that have been participating in rallies, that are big cap. Enough with the small cap time-bombs, god damn it.
Here is my short list.
CLR
AR
HP
WLL
Oil/gas and equipment
BHI
WFT
SDRL
EXH
SLCA
Keep in kind, this might not bounce tomorrow and this industry might sell off some more. But it’s likely buyable down here. Establish a process by which you can add to some names, hopefully with the proceeds from some stocks that you took profits on last week.
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I’ve got to believe that this growing oil workers strike will eventually raise the price of oil despite all the bell charts of supply and demand that insist it will take months of down refineries to effect production. But what do I know. I’m just a lowly Uber driver
EOG SLB
Agreed. The hand cradled oil like a new born babe today. Granny likes wti.
12 months from now.. it will be fun to see the 20/20 posts. The PPT knows what’s up well before we know what’s up.
Ultra FIG
Fly is on TD Ameritrade video
Bcei, syrg
Arrrrrgh, I will stand in for the pirate on this chart:
the dreaded cock and balls formation is afor ye…
I only play the dreaded cock and balls formation. All others are shit. High risk high reward. ALL BALLS.
Cracker Barrel blew out earnings…
RIP Ronald McDonald
every time I pull up a PDCE chart its ripping without me
I am building a three tier oil position in equities, with AR / BTE / NADL as my holdings, much more weighted to the first two, and using NADL as my “leverage” in the position. If BTE fills its volume pocket I am planning to flip it into EVEP. Buying AR this morning. Haven’t bought NADL yet, though I kind of like the spot here. But I won’t allow myself to buy into 2 companies on the same day so I don’t get stuck over-buying at a spot that will look bad in retrospect . Trying to force myself to exhibit some self control.
NADL is super risky
Well noted. I’m treating NADL like a call option, with maybe only 10% of the overall allocation into my oil position,
Just picked up a small position in some BBEP for an oil play. High Divy, too. Hoping for the seasonal bounce at very least.