Though yesterday I closed some oil June contracts , I bought ERX at the same margin impact because I think ERX will make more profits as the stock market is rallying by itself so oil stocks will rally even more. The stock market rally and the oil rally wil support each other.
Briefing: we had 2 weeks of consolidation, breaking below the 10 but the 20 caught the price and we are bounced from the 20 and break above 300 . If we are holding these gains today and close above the 300 we will be heading to 50$. I'm looking forward to see a slow but unstoppable move above 50$ in the following weeks.
Now it's time to watch the news. The news will be starting to talk about increasing demand and decreasing supply. This is the green light when everybody will feel safe that the path is clear and oil is in rally mode.
So we will have everybody and his dog on board now.
The panic buying is starting. We are over the half of the intermediate cycle so I think we will have the top in 4-5 weeks. Oil shares might run for more after oil topped - same like in gold and GoldMiners - in the euphoria so when I feel oil has topped I will move all my capitals into ERX and other oil stocks.
And I want to remember you one important thing: The sub 30$ oil prices are history .
To change the direction in your mind and to bet on it one of the hardest things in this business.
"The human side of every person is the greatest enemy of the average investor or speculator." - Jesse Livermore