top of page

Energy-The next leg up

Oil and the energy sector are fast approaching the 200 day moving average. I am not the biggest fan of moving averages but I know for a fact that almost everyone has one on their chart. Even the traders who say that they hate “moving monkeys” lol. As we are watching this, I am also seeing that the COT report has commercial traders coming in at a significant level where we usually see bottoms in the oil market. (First chart)

I do think that the major trend will be inflation over the next few years with disinflationary periods in between. Are we coming out of that disinflationary period?Let’s take a look.

The futures curve also is set up to bring the commodity higher again. Currently we are long gasoline and the energy sector. Oil is very close to a buy signal as well. This is much different than our recent positioning (we are still holding on to our long tech trades which are holding up very well) however, what I do as a trader is I trade what is in front of me. I do not trade what I hope will happen.

19 views0 comments

Recent Posts

See All

The Mental Game of Trading

Commodities, Oil, Sugar, Sectors, Stocks, Geopolitics and More! In today's episode, we are honored to host Michele 'Mish' Schneider Stay informed. Stay resilient. Agains


bottom of page