Thinking about OIL!

Are oil stocks just correcting?

Have they topped for good?

If so, what does that mean for the market?

I am getting a lot of questions. I have no idea. Intuitively, oil seems CHEAP to me. We have had it soooo good for so long in this country. It is our cheapest form of freedom. American’s love to drive and this is the penalty.

From a stock investor perspective, I would love to see $18 /barrell oil again as I think $70 oil is a MAJOR TAX and DRAIN on EVERYBODY. I think we are finally paying the piper.

I know the oil companies are making a fortune, but hey, you could own the stocks! I do believe the public markets are somewhat corrupt in that the small shareholder is not likely to force compensation or board change.

That is why I rely for the most part on trend following.

That said, the OIL trend looks tired, but I don’t think it is broke. Short-term, it looks like the stocks could get whacked, based on my GUT FEEL only and some reading and some charts.

Here is some interesting charts and discussion from Degraff. Do with it as you wish!

oil2.pdfoil1.pdf