Banks are to be Loved, Oil Faded

Over the past two days Exodus has been flagging the financials oversold. I discussed it briefly, due to the very accurate history of the signals. Today the banks are running like freed slaves. I do not claim victory in this endeavor, as I didn’t have a horse in the race. Perhaps if I wasn’t so stubborn, I would’ve done something about it. But that’s another matter to be worked out with my inner demons.

Today, there is another interesting call being made and I am going to tell you what it is, in spite of a certain fuckhead who’s been menacing me with his childish complaints.

This should come as no surprise to you, so I feel at liberty to discuss it. We all know that oil and gas stocks are overbought. The only question you should have  is how does one quantify it and what are the past results of selling short into overbought levels, such as now?

This signal is flawless by the 5th trading day; which means if you shorted it on Monday, you should expect profits by the first day of the following week. Some of the levered ETFs, like ERX, are overbought too and the potential profits of leveraging this trade is tempting. But short squeezes are brutal affairs and it’s best not to get too aggressive while these little speedboats are racing across the waters.

Wait for them to hit a rock, then pounce on them with medieval intentions. Moor their little ships and then crush them into the octopi infested waters.