After the close API numbers indicated a draw of crude inventories — which is providing succor to crude prices. Otherwise, it has been a dreadful month for oil stocks — with the drillers off by more than 20% in less than 4 weeks.
Devastating losses can be found amidst a sundry of small cap drillers. On the larger capped end, $WLL leads to the downside with a -21% showing over the past month.
In Exodus, our predictive algos are screaming oversold. The sector registered a score of just 2.01 today. The last time the scores were this low was on 11/29/16 at 2.02 and 3/23/16 at 1.97.
Juxtaposing the oversold scores v the energy stock ETF $XLE is meaningful to note. On 11/29/16, XLE closed at $70.46. On the very next day, it closed at $74, moving higher towards $77 within a fortnight.
On 3/23/16, XLE closed at $60.45. Between then and April the 7th, the price stood in a very narrow range, breaking out on 4/8 — eventually moving higher on a daily basis towards $67 by month’s end.
Bottom line: although scary, now is the time to buy the dips in crude. I’ll be opening some positions tomorrow, hopefully into a harrowing margin call.
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OIH printed a DragonFly doji on 11/29/16… today it printed another DragonFly doji that tested out the lows from 11/29.
RES …chart is similar…. FRAC reported earnings after the bell…..its been on a downward spiral since the IPO
Oil is a buy now based on TA
You can have my shares partner. The oil is fucked between $30 and $60 for a very long time.
Just a thought. Does MAGA necessarily mean commodities participate. It doesn’t take more steel to build a car in the US as opposed to Mexico. And if a curb is put on redistribution of US wealth worldwide, seems it would slow other countries. Tech is holding up well while commodities are tanking. More wealth staying in the US means what?
FANG is Deep State. Basically Big Gov front Corporations. Throw in MSFT ORCL AAPL etc. What other industry can possibly endlessly innovate and never go bust. Then consider the bankster fraud of creating cheap money to then bust out industry like every third world Country since the phrase was invented. That being said. Do not know.