XLE - Oil Sector has Great Potential
For those who have infinite patience (silver stacking develops this virtue), the oil sector appears to still be one of the best value plays around. Crude has nearly doubled from the 30s late last year to be pushing 60 as of late. While higher prices and carbon taxes will probably push gas prices to levels never seen before in the US, past experience showed that supply/demand factors had no correlation with prices (the new normal in economics p.s., don't waste your money on an elite B-School MBA).
A little bit of foresight shows the potential of making four times your money on various equities in the oil sector. Looks like first resistance will come about 20% higher as we hit the neckline of a former head and shoulders top. But ultimately, the pattern can develop into a massive reverse head and shoulders, playout out over the next three to five years.
Comparing many oil and oil service stocks, they all look pretty much the same. XOM is paying a strong dividend and the company insists it will continue the payout. Other options include APA, CVX, IMO . . . and the oil service sector, SLB. They are all playing out the same pattern here. Although the long term down trends are still intact, these markets have so much money going to them now that anything cheap has the potential to soar to dizzying heights. There is going to be massive inflation as a result of the money printing, the only way it seems that one can protect him/herself is ensuring a solid exposure to the commodity sector.
A little bit of foresight shows the potential of making four times your money on various equities in the oil sector. Looks like first resistance will come about 20% higher as we hit the neckline of a former head and shoulders top. But ultimately, the pattern can develop into a massive reverse head and shoulders, playout out over the next three to five years.
Comparing many oil and oil service stocks, they all look pretty much the same. XOM is paying a strong dividend and the company insists it will continue the payout. Other options include APA, CVX, IMO . . . and the oil service sector, SLB. They are all playing out the same pattern here. Although the long term down trends are still intact, these markets have so much money going to them now that anything cheap has the potential to soar to dizzying heights. There is going to be massive inflation as a result of the money printing, the only way it seems that one can protect him/herself is ensuring a solid exposure to the commodity sector.