Crude Oil Continues To Slide
I covered the last third of my XLE short position today. What I noticed on this last push down (last few days) is that some of these oil stocks have stopped going down. If you look at stocks like TSO,VLO,,SLB,RIG,TDW,HAL SUN and many others you'll see they haven't made new lows with the oil futures. So as a trader, that gets my attention. Now this doesn't mean that oil stocks have bottomed. I just take this as a sign of a possible rally coming in the very near future.
Look at the above chart of USO which is basically crude oil..Notice the massive increase in volume on this down move...That too gets my attention.
The February contract for crude oil goes off the board in a few days so you can expect to see some wild volatility as we approach expiration.
I'm not buying oil stocks yet, I just wanted to share my observations with you and alert you to the possibility of a rally.
Posts
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-euro-small.gif)
4 comments:
who are you? you write a very good and thoughtful blog.
Hi Jeff...I'm just somebody who has been trading for awhile and decided to start a blog..who are you?
I have been trading/investing for 30 plus years - stocks, mutual funds, futures, options and Forex. Over the last 5 years or so I have been trying to swing trade instead of investing and have not done well. I started earlier last year day trading and have shown some success. My real job is a Team lead of a development group in telecommunications field.
You write a very clear and insiteful blog with a lot of very good ideas yet you are one of the few that has no personal info or bio on your site. I read many blogs out there and yours is one of the better ones. I am wonderring about your background and how it fits into ability to look at the markets so well. And yes just like my wife tells - I am nosey.
Well, lets just say I've paid my dues when it comes to trading in terms of time spent studying and trading the markets. I've been doing this awhile, I've traded commdodity futures for many years which means I have alot of experience with oil, bonds, currencies,grains and metals..I currently trade stocks on a daily basis.
I started this blog for 1 reason. I really do enjoy trading and wanted to write about it. I enjoy talking to other traders and I figured writing a blog and getting to know other bloggers and traders is a good way to share my passion.
There you have it...my profile.
Post a Comment