I'm guilty of trying to take on the "fundamentally" challenged
sectors -- and I've been killed. Maybe this is a better
strategy -- less hyped -- take on the weaklings. XOM weekly
looks like a huge problem. Both in energy sector and because
it is among the biggest market cap stocks in the world. I
would imagine that if the market ever sells off, energy might fall
off a cliff. Within energy, solar is getting killed in the
last six months. It too has little support left and is
clearly in a bearish configuration on nearly every time frame.
Especially surprising because I would think they would have gotten
some of the boost of the small cap hype over the last 4 months.
Thoughts?
Posted by racerick on 19th of Mar 2010 at 10:55 am
It's generally always good to pick on the relatively weak stocks
if you're shorting unless you get a strong stock that's
really extended. For energy plays don't forget USO, as well as DIG
and DUG. USO plays real well usually with 15min chart usuing 50ma
crossover. Good for 2-4 day trends if oil moving.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Shorting weakness in energy?
Posted by kalinm on 19th of Mar 2010 at 10:41 am
I'm guilty of trying to take on the "fundamentally" challenged sectors -- and I've been killed. Maybe this is a better strategy -- less hyped -- take on the weaklings. XOM weekly looks like a huge problem. Both in energy sector and because it is among the biggest market cap stocks in the world. I would imagine that if the market ever sells off, energy might fall off a cliff. Within energy, solar is getting killed in the last six months. It too has little support left and is clearly in a bearish configuration on nearly every time frame. Especially surprising because I would think they would have gotten some of the boost of the small cap hype over the last 4 months. Thoughts?
Energy stocks
Posted by racerick on 19th of Mar 2010 at 10:55 am
It's generally always good to pick on the relatively weak stocks if you're shorting unless you get a strong stock that's really extended. For energy plays don't forget USO, as well as DIG and DUG. USO plays real well usually with 15min chart usuing 50ma crossover. Good for 2-4 day trends if oil moving.