Comments on: Crude Oil & Energy Sector Analysis

By: Dean Drummond

Dean Drummond — Mon, 12 Aug 2019 15:42:51 +0000

In reply to Nick_SemperFi. Then keep an eye on XOP as that is the 1x ETF that tracks the same sector as GUSH & DRIP. However, I much prefer to use the charts of XOP even if trading GUSH or DRIP as the latter two both suffer from decay due to the 3x leverage & as such, render a distorted price history.

By: Nick_SemperFi

Nick_SemperFi — Mon, 12 Aug 2019 14:37:19 +0000

Looking forward to a pop in GUSH soon.

By: Dean Drummond

Dean Drummond — Mon, 12 Aug 2019 14:28:10 +0000

The developments in these charts of crude oil & the various energy sector/sub-sector ETFs above are only potentially bullish developments with some work still to be done in order to firm up the case for a decent rally & bullish trend reversal. Think of it as getting a 2nd interview for a job. That doesn't mean that you definitely have the job, simply that your odds increased when you were granted the first interview, then increased, even more, when you were called back for a 2nd interview & would increase dramatically higher if you were to receive an offer. The job offer would be the "breakout" those downtrend lines or some other type of high-probability sell signal. Even then, a job offer doesn't guarantee you the job, just as a breakout doesn't guarantee your trade will be profitable if you take it. A job is usually contingent on a background check which could cause the offer to be retracted (breakout to fail) or you may not accept the terms of the offer (pass on the breakout). Also, keep in mind that the bearish scenario for a deeper correction in the stock market is also contingent on the indexes taking out those key support levels below, such as the bottom of last Monday's gaps as well as Monday's lows. As such, if the stock market can hold above those levels this week & start to move higher, then the odds for those energy trade setups firming up with have sharply increased.

By: Nana

Nana — Mon, 12 Aug 2019 14:09:45 +0000

@rsotc Based on major indexes it shows sign of market pullback, but energy sector showing sign of rally. Does it mean they both are going against each other..or energy sector will all pullback and then rally with market.