I can’t help it but I need to write yet another energy post. It’s hard to be bearish energy in general if oil continues to trend higher (see here) and if US natural gas is just breaking out of a major bottom (see here).
But I promise I’ll try to make this post shorter. I’ve already written about the futures market so let me focus on equities now. My main question is, could $XLE energy ETF start outperforming broad based S&P 500 index?
Read MoreOne of the characteristics of a trending stock market is sector rotation. In a bull market not all sectors are necessarily trending higher and sectors are taking leadership in turns. This means that some are bound to outperform while the others are under performing. Sector rotation is a very important fuel of a bull market. So identifying sector rotation is crucial to be successful in the stock market. The phrase past performance is not an indication of future results is something that applies here very well!
We’ve seen increased volatility in the stock market this past week. I think that the reason could have been due to a rotation and not because a major top is forming just yet. Read More
My holidays are over and it was nice to see that things that I’ve been writing about are mainly playing out as expected. One of them is also oil. To me it seems it can go a lot higher! There are so many bears because of an over rated shale potential or because so many people think that demand just can’t pick up. I disagree with their arguments, not only that, I take the opposite side! Also, there are bulls but who are not really bullish, rather neutral, as they think oil can’t go much higher.
I wrote a lot about my bullish thesis so many times in the last couple of months. If I focus only on the last two, in the first one I was writing about my $60 WTI price expectations and in the second I wrote an update on the 1st one. I really wouldn’t like to repeat myself, so you are very kindly invited to give them a read. Read More