Oil Bubble Popped
Back in June I talked about the oil bubble that was forming. That one turned out to be spot on, and as with most bubbles, the pop tends to push the oversold state to the extreme too. Once again, don’t buy oil against the trend since it could easily see $30 before it turns around. Demand is shrinking, but so is OPEC output and eventually they’ll find their sweet spot again. This is one industry where I wouldn’t mind trading against the general market direction, so at least it gives an interesting long that has potential to do something within the next couple years.
Triggers
- Breakout Above $80 - Long term buy
- Below $55 - Shift breakout points according to monthly trend line
Comments
Leave a Reply