Oil 4TW
Let’s take a look at the ETF that tracks oil, USO. The ETF is trading right around the 100 day moving average and sitting on an uptrend line. Oil needs to bounce here to prevent a significant breakdown.
I like my chance being long oil here into oversold conditions. Currently I am long ERX, which is the tipple leverage oil & gas ETF, however should the market breakdown, I actually think this will turn into a good pair trade, Long oil ETF, short individual oil & gas stocks. For example let’s take a look at a few charts that with bearish patterns.
The first is Chesapeake Energy Corporation (CHK: 23.79 -5.03%) , this stock displays an attractive bear flag, and on any further weakness I will get short to catch this breakdown.
Up next, let’s take a look at Frontier Oil Corporation (FTO: 13.88 -3.94%) , this one is about to break a heavy support level around $12, I want to get short with a break below the $12 level:
There are plenty more individual names in the oil & gas sector that display similar patterns, but for now I will ride this oversold bounce in oil.
long more ERX
erx is basically long individual oil names…
XOM, CVX, COP, SLB, etc
Elliot wave in SPY may confirm breakdown if it declines around here (89ish). Otherwize if it climbs to and closes above 90.50 or so we are not in downwave.
Given correlation between oil and S&P I say that get long oil end of day if it SPY is around 90.20-90.50.
what does “4tw” mean? sorry, i’m behind on things.
4TW or FTW stands for “For the Win”.
awesome.
a close of the SPX above 950 (930 minimum) would signal that we are in a wave 3 upward pattern which is the best to trade