The Daily Breakdown: XOM
Bulls are in quite a pickle here. On one hand, Energy has been one of the best performers of the year. On the other hand, how can Bulls get uber bullish when the high cost of fuel is stripping all expendable income from the consumer? I think Energy has to come in some here. My favorite way to play energy weakness is to short Exxon Mobil.
Exxon looks like it might have put in a huge triple top here. I’m watching the triangle develop for an opportunity to get short. (XOM: 66.80 -0.62%) is currently nearing oversold, so I may wait for a bounce before taking a position.
Another way to play any weakness in oil is through (DUG: 12.03 -0.08%). This is the ultra-short oil and gas fund. It has been very very volatile, but it does appear to have an uptrend developing.
And due to moo’s timely comment, I’ve included (NOV: 43.94 +0.11%) as a short candidate. It is sporting an almost technically perfect short setup.
Fuck XOM and the cocksuckers who drink their fruit punch.
Long live DUG holders.
Ahhh. Finally, I’ve posted something that has met with the approval of The Fly.
This breakdown that seems to be forming in XOM looks to be pretty serious.
Woodshedder-
Any opinion on Oil Servicers, esp. NOV?
I like DUGs.
Moo- wow, NOV looks like a great short. Its got a death cross, 50 day avg. resistance, and generally looks like it has made a big ole top.
I’m not the one to ask about fundamentals…it is a stretch for me to even state that I think oil has to drop here for the bull game to work. It seems counterintuitive to believe that oil will drop before summer. However, everywhere I look there are energy stocks making 52 weeks highs…and then I see XOM in a big ole triple top. I have to think the technicals are saying energy is due for weakness.
Good call on NOV - I had that one in my scans last night too as a possible short. Volume patterns are absolutely perfect for a short - no volume on this last recent bounce. I wouldn’t mind seeing one or two more light volume up days.
Perfect entry into NOV today!
Bought 36 NOVQL puts at 5.2
Let’s see what happens! I will add to this position on any strength…
Holy shit, Wood, take a look at the sixty day, 15 minute chart on XOM, and specifically at the volume bars below.
It’s like a freaking regular heartbeat! Yeah, not TOO manipulated… sheesh!
added to NOV position @ 59.50
GPRO -
SHorting this one @ 51
NOV -
About to kiss the underbelly of 50 DMA @ 60.88
Will continue to add to my position…
Correct, is Fly.
“One Lazy Fuck,” you are.
Yoda,
Just got back from “Skate Night.” Wife is in grad school… Just got kids in bed. I’ll have you something to read within the hour, hopefully.