Oil stocks as represented by $OSX remains on a major sell signal, which is
now two years old.
Crude oil remains on a short-term buy signal, but is due for a correction.
COT data indicates that speculation remains at levels of previous tops.
Summary
Oil and energy stocks have been correcting but oil prices remain firm, thus
resulting in a divergence that has been in place for a few weeks now.
According to current COT data, crude oil is due for a correction; caution is
advised.
Jack Chan is the editor of Simply Profits at
www.simplyprofits.org, established in 2006. Chan bought his first mining
stock, Hoko Exploration, in 1979, and has been active in the markets for the
past 37 years. Technical analysis has helped him filter out the noise and focus
on the when, and leave the why to the fundamental analysts. His proprietary
trading models have enabled him to identify the NASDAQ top in 2000, the new
gold bull market in 2001, the stock market top in 2007, and the U.S. dollar
bottom in 2011.
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All charts courtesy of Jack Chan.
