The energy sector has been obliterated here as of late, as you all well know.
It is during selling pressure like this that I like to break out the point and figure charts.
My preference with these tools is not timing based, but to look for low risk and manageable opportunities in oversold sectors.
Let’s start with an evaluation of this sector through the lens of the bullish percent indicator. As the signal suggests, this is the most oversold the group has been since 2011.
To make it simple, lets say there are 100 energy stocks in the Energy sector. A bullish percent of 11 would mean that only 11 stocks are on a buy signal, while 89 energy stocks are on a sell signal. You could spend a lot of time thumbing through charts of energy stocks on buy signals, but here are a handful to consider…
BHI, SLB, WFT, APA, DVN
The above tickers are stocks that remain on a buy signal in the energy sector, where longer term trends still remain in tact. Each of these stocks also generated MY OVERSOLD SIGNAL into today’s reversal (all three time frames).
These tools are great for longer term holds. If you have a 3-6 month time frame, I strongly recommend you take a look at this style of analysis.
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Excellent. Thanks Jeff.
Jeff, when will today’s recording be available?
FANG-Bangers
I tried NOV yesterday, got out flat at the end of the day but I bought again today just under 73. Looking to get a big bounce on energy. I feel like when they bounce it’s going to be big for at least a few days
First 3 names have literally the same chart (disregarding price just the candle patterns)
Last 2 have are same but different from the other 3.
WFT has some huge nov 115 call volume.
When will today’s recording be up I missed it today
AHWOA recording isn’t up??
I don’t see it either.
Yeah no recording?
Tuesday’s is the last recording there. So it could be uploaded to vimeo maybe but there isn’t any embedded video on the AH blog linking to it yet.
There was a glitch. Sorry. ..up now.
I want some of that APA
Like the DVN
Sweet. Bought some COP and WRES at the bell. Hope the whole sector sees some love shortly.
Having worked with the big oil industry and living in a state whose economy is dominated by big oil, I wouldn’t doubt some behind the scenes machinations to pressure congress to allow exporting of US crude.
Thanks for the list Jeff. Hope the sector turns around.
SLCA looks like a similar set up as well maybe?
NUGT!!!!!!!!!!!!!!!!!!!!!
Futures puking again. Every freaking day…Good Lord
My nerves desperately need a gap and go. And not in the direction the futures are pointing ha. Good luck all. Hang in there
last chance to buy BAC calls on the cheap ahead of earnings @ 16.92
trimmed some GMCR this morning for about 220%…its saving me the past couple weeks.
Haha. Same ole shit for te bears. No juice. Ruseel getting crushed
OA are you holding googl weeklys or is it prudent to roll to next week?
OA
Do you like $MELI here?
Wow. I think this is what jeff had been talkig about. To watch out for a day like this when you come in and see every risk stock getting hammered way more than the market. Full on rotation out of growth stocks here
wait..FULL on rotation out? why the action in DATA and PANW..now and of late? keep your obs tight bro, a little too broad
What? I must have a different set of risk stocks that I’m looking at.
What? They are all up dude? WTF?
is that the real Bchu or impostor Bchu? get you an avatar…I picture something like a stormy beach: http://nature.desktopnexus.com/get/1351911/?t=96hi12ggr5l69nspqtkjq1mhc254369bdd0300d
All up?? Uhhh..ok
I’ll take software stocks as an example. Market down, $DATA $GWRE $NOW $N $CRM $VMW $MKTO all up.
@Jeff does it make sense to get calls in BAC here; I’m at work and don’t have access to my platform? With earnings approaching wouldn’t IV suck the profits away ?
I own calls, yes.
Jeff did the chat interface on your site change?
Yes, email if you are having issues.
any solace in the fact VIPS hasn’t cratered while the indexes dip down? Is it sporting the wedge of 2013?
I’m content to avoid china internet for now.
Other good oil plays for the long term are OAS and TPLM. I’ve been long these two for a while; price is just too cheap for growing companies like these.
if Uncle Carl thinks AAPL is worth $1.2 Trillion….BABA is worth considerably more than $215B. Bulls take control above 90.
This is crazy fast; ATR has to going wild. May sell everything and just wait on the sidelines for a few
Goldman put a price target of $49 on fslr
Did you know it was on their conviction buy list in 2011 when I was short that stock too?
take a walk Danny, reassess when you get back
Want an easy way to make money? Short strangle the $1.50!strike options in EXEL. Like taking candy from a baby, if I may say so myself
Short strangle EXEL $1.50 strike….”the gift that keeps giving”. It’s nice to know you’re trading alongside the specialist. Winship 🙂
calling a major reversal and positive close. selling pressure should abate once Europe closes. Buy stocks that are green (BABA TSLA MBLY)
Jeff, I’m not able to enter chat. It doesn’t recognize me. Gives me the “user not found” message. Can you help? Thanks
Click “register”
The energy sector and this meltdown are setting the table for some fabulous trades and investments to pounce on soon. Outstanding companies being taken to the woodshed and sporting oversold conditions rarely seen. Patience and homework will richly reward as this is not 2008. Market quickly correcting supply imbalance postponed by ISIS and the Ukraine.
we rip once apple clears 102….all aboard!
The Great Rotation has begun….short bonds / long equities
Baba budan baby