I seriously hate oil charts

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.

Gold is in solid uptrend though you couldn’t tell it from the mining stocks. Gold usually leads so I expect GDX to break out soon. 

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.

CEFL continues to print money. 35% return last yr and close to 20% already this yr. I plan to increase my position size on the next buy signal.

2 thoughts on “I seriously hate oil charts

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