Regarding the recent bearish setups posted on TSO (Tesoro Corp) and VLO (Valero Energy Corp), both refining stocks, I wanted to share my current thoughts (as posted below from my reply to a question that I received today):
Q: Hi Randy. I am sure these are on your list, but just reminding you about Tesoro and Valero.
R: Yes, noticed the clear breakdown in TSO with VLO still clinging to the uptrend line like an overboard sailor clinging to a life preserver. However, (I'm) passing on a short entry for now based on my near-term bullish bias for the broad market which, if correct, would most likely lead to the TSO breakdown ending up as a whipsaw signal. Might look to position short on a backtest soon though. (end reply)
Regarding the categorization of both of these trade ideas, in the previous post last Thursday, I was only pointing these out as potential, but unofficial short trade setups at the time, without any official entry criteria listed. As such, both remain unofficial trade setups at this time but may be added as official trade ideas soon, depending on how the charts play out going forward.