I recently read an article about Jethro (Hillbillies) and he’s still kicking and playing lots of golf. I do like Jethro Tull too. I think I’m showing my age.
Bublin crude is gettin’ its bid on. Is it time to buy some?
Let’s drill down a little and test what’s underneath the surface.
SPDRs Select Sector Energy ETF (XLE) monthly
Looking at the monthly chart of XLE it’s easy to see the trend from 2003 is upwards albeit with two massive 50% corrections along the way.
Primary support is the upwards sloping trend line. Price violated this support zone in early 2016 and again this year. Now, price is trading above this zone again. Hmmm. Slightly interesting.
We should drill down a little further…
Exxon Mobil Corporation (XOM) monthly
XOM is 23% of XLE.
The monthly chart shows a massive head and shoulders pattern that has corrected in to long term trend line support. Hmmm. More interesting.
Chevron Corp (CVX) monthly
CVX is 16% of XLE.
Price action is a bit more bullish here than XOM. Even more interesting.
Schlumberger Ltd (SLB) monthly
SLB is about 7% of XLE.
Price has been hovering above long term support for a few months. This is a good sign as well.
So, now what?
I’m not sure yet. It is interesting to note that TSLA is getting beat up big time at the same time as oil is getting bid up.
Tesla Inc (TSLA) weekly
TSLA is down 20% in the last five months. It looks like it has a chance to consolidate around good support. So, will TSLA bounce? I’m not sure yet.
For sure I’m watching closely. TSLA is much easier to trade than XLE, believe it or not. But, either way it’s too soon to risk capital on TSLA , XLE, XOM, CVX or SLB.
Be patient. Price action will be our guide. All of the other noise is just garbage.
The longer I do this stuff it becomes more and more apparent that no one knows much of anything about connecting fundamental analysis to price action. Jeez, so many “market professionals” being so wrong so often. It actually sickens me. Zero risk management from so called “gurus”.
I have been wanting to put more capital at risk but no good entry points quite yet. Soon me thinks but not today.
Continue to hold all open positions.
It’s been a very good year if you have followed my recommendations and price action continues to look good for open positions.
I really want to buy some Bitcoin and some other digital currencies but price action is extremely volatile.
I might have to just buy a little. I’ll let you know.
Trade Smart,
Don