I’m the ultimate alpha male trader. I like trucks, oil, gold, and machines that dig holes. I have to push myself to trade technology. Left to my own devices my portfolio be filled gold stocks, oil stocks and industrials. That isn’t a good Money management.
Because of this weakness I always want to buy oil stocks and I own way to much now. But technically oil charts look terrible. Let’s look the ETF at $XLE.
It is perfectly defined downtrend. All moving averages are sloping down. All in numerical order 5 ema, 20 sma, 50 sma and price is below them.
All 5 my indicators are on sell signal. No rush to buy here unless you have really long term view. Hard imagine oil stays below $50 forever. Let’s now look at the commodity itself.
Oil is in a wide downtrending channel and currently on sell signal. No rush to run in until price breaks above the 20 day simple day moving average.
I am long gold using 3x leveraged ETN ugld. I’m up 6%. My target is $123 on gld. That be 10% profit I will look to sell 1/4 my position.