Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Most of you already know of my fondness for energy shorts. Here are a couple of leveraged bearish funds (thus, longs) that got beat up badly lately which I believe are ready to reverse into new highs for the year (Allah willing). Here’s the one I’m presently long:
Well, the weekly inventory report came out, and the substantial inventory draw sent prices ripping higher (as I’m typing this, the front month is up nearly 3%). This isn’t great for me, due to my focus in energy shorts, but I actually only have one position in my portfolio in the red, so it’s not too bad. I did trim my ERY long position by about 35%.
My view is that oil sort of flushed out the stops a few days ago (red circle) and it’s recovering from that. However, there is a massive wall of overhead supply (see red horizontal line) that I think will be a strong boundary to further upside.
In the short time I’ve been typing this, crude’s rise has faded to 2.75%, so I’m thinking maybe we’ve already see today’s high.
The highlight of last week for me was energy’s breakdown (well, the real highlight was the launch of SlopeCharts, but the trading highlight was energy). Looking at the USO chart, you can see the clean break. I consider it plausible that crude oil will see the upper 30s before a meaningful reversal.
An interesting infographic……. (more…)
YES! It’s finally happened! After all this waiting, crude oil has finally shattered the support level I’ve been watching for so many months. Ever since Gartman did his widely-followed broadcast on April 11th instructing people how to take advantage of the bull market in energy, the commodity has fallen EVERY SINGLE DAY with only a single exception. This is very exciting.
