Tuesday, December 06, 2016

Head And Shoulders In Oil?

With and Without

By -

Good morning, Slopers, and welcome to a new trading day.

It’s the same old deal with equities – – lifetime highs across the board. I must say, though, I’m quite taken by energy once again. Take a look of this crude oil chart, and note the circles in particular:
1206-oil
This market has been range bound for many months, from about $42 on the lower end to about $53 on the top. What I find interesting is that, in spite of the worldwide hoopla over the OPEC deal (and, let’s face it, since it’s been EIGHT YEARS since anything like that has been announced it really is a big deal), the price peak (red circle) didn’t even get past the level seen in October (when no deal at all was even announced!)  I think that’s illustrative of just how much of a non-game-changer this so-called historic announcement is going to mean. I thus remain short energy stocks AMJ, APC, CWEI, DVN, and EGN.

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