timwest

BUY Crude Oil (OIL), SELL SHORT Chevron (CVX)

BATS:CVX   CHEVRON CORP NEW
440 2 0
How is it that crude oil             is so far out of sync with the price of energy stocks?

This chart shows you very clearly how they move together, but at times they reach extremely far apart. After an extreme, they come back together in a dramatic fashion.

I can't wait until Tradingview has ratio charts so you can see what the ratio chart looks like.

The lift in crude oil             futures today and the drop in CVX             could be the beginning of the closing of this very wide spread.

I believe the upside here is 10% over the next month with a downside risk of 5%. Since this is a pairs trade, don't just cherry pick one side of this trade because I don't know which side of the trade will generate the profit. It could be that CVX             falls and OIL             stays the same.

Technical Tim

Wed, Oct 10, 2012 12:40AM EST
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
CVX announced lowered guidance before the market opened and the stock gapped and traded down sharply from this extreme. I doubt anyone had a chance to put this trade on. Either way, I may look to XOM instead as that has the same or a similar chart setup.
Reply
http://stockcharts.com/h-sc/ui?s=OIL:CVX&p=D&b=5&g=0&id=p03846123698 Here's the link to see the ratio - note how the macd is turning up from oversold. Note how the RSI is approaching neutral and looks to be at a new 22-day high.
Reply
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
ประเทศไทย
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out