Good morning, everyone, and welcome to the end of the week. I’m looking forward to a long weekend, since it’s bound to be more riveting than this volumeless, watching-paint-dry, levitates-each-night market we are in. At least crude oil is continue to soften up………
What I had planned on doing this afternoon was a post of about a dozen terrific energy-related stocks that are good short candidates, but ProphetCharts is almost unusable at the moment. I only managed to get one chart out of it before it stopped fetching them. I sometimes feel like I’ve allowed my child to be adopted, and when I run into the youngster a few years later, it’s become a juvenile delinquent. Sad.
Anyway, the one chart I managed to fetch before ProphetCharts starting puking all over its data servers was Energen, shown below. It’s very typical of energy stocks these days:
(a) a former smooth run-up;
(b) a clean series of lower highs, separated by violent V-shaped recoveries
(c) its current price is, shall we say, lofty in relation to its history as a whole.
Markets often have an obsession with Big Round Numbers (20000 on the Dow, 2000 on the S&P 500, 5000 on the NASDAQ, and, most relevant today, 50 for crude oil).
Well, crude oil, after having risen nearly SEVENTY PERCENT (which is just great for the economy, right?) in the past few months, made its Big Round Number today and promptly reversed into a bearish engulfing pattern.
Well, not much happening before the open this morning. As I’m typing this, the ES is up a tiny bit, the NQ is down a tiny bit, and traders the world over are bored a tiny bit. All the same, I remain laser-focused on crude oil, which I think is the most important chart cooking. The goal remains the same: break that wedge.
Good morning (technically speaking), everyone,
Crude continues to be strong, this time driven by mayhem in Nigeria and Venezuela (which I find oddly more comforting than if it were central bankers doing the meddling). The next important level to watch is 47.93, the former “lower high”, which also corresponds quite closely to what would be a bullish breakout of the wedge. I hope this doesn’t happen, but that’s the level to monitor!
Happy Friday the 13th, everyone.