In this video, I want to show you how the XLE is behaving in a multi year trend and what I expect in the next few weeks. Disclosure: These are my opinions and should not be taken as investment advice. I only draw lines on charts.
Have a great day all!
Consistent growth, profitable, SUPER cheap relative to broad valuations! A rising oil price over the coming years will lead to earnings estimate increases!
... to finish after I was rudely cut off, options returns are a bell curve based on duration, you never want to hold them until expiry unless you are planning on taking delivery! (*Note to tradingview - performance should increase for paid subscriptions)
API data released at 4.30pm EST on Tuesday show a "surprise" build, however, with expected weakness in hard data there should be no surprises. EIA data will either confirm or deny API's release.
Crude has reached and surpassed our expected target of $61.60 for a reversal. Look for weakness into the close of day today.
Commodities are typically the last asset to peak during a cycle. We typically interest rates peak first, a couple of months later that followed by equities and a couple of months after equities we see commodities peak. Commodities such as crude oil, are part of the contraction phase in the cycle, the higher the price rises it begins to acts as a tax on consumers...