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MV Weather Report: Cold Snap for Oil Only Temporary?


Rain or shine, we review the day's biggest stock stories.

The bears won the battle today as the market sold off. Once again, the financials led us to the downside. This was expected, as the group was the leader during the upside move.

I still don't think the group has pulled back enough to make them attractive from the long side. These stocks are still up huge off the lows: Take a look at Bank of America (BAC), Citigroup (C), Wells Fargo (WFC), and JPMorgan (JPM).

After being the hot trade for a few days, the energy stocks pulled back today. I think crude oil can actually move higher from here. Some names of interest I will be looking at over the weekend are: Transocean (RIG), Apache (APA), National Oilwell Varco (NOV) and Chevron (CVX).

I want to go back to the bank stocks and show a technique that Professor Smita Sadana uses often: Flipping the charts over. I really like this idea; here's her Buzz about it from today:
"So, I flipped KBE around, just to see if my eye caught something different from its usual upright position:

Click to enlarge

"(Remember, this is the flipped-over version.) See how the price recently broke down below an up-trending price channel? If you had been looking to short this stunner, where would you set your eyes at?

I would look for a price retracement back to the 21-dma.

Click to enlarge

"Ok, back to it's right-side-up version. Given what we talked about, I think a low volume retreat to $11.6 (top of the trendline AND vicinity of current 21-dma) would make up for a good risk reward scenario on the long side."

What a long week. For a preview of next week, check out the trading radar.

I'm going to relax this weekend and watch my Minyanville March Madness bracket (I'm currently in 149th place). UCLA pulled out a close one last night. They play Villanova tomorrow at 1 p.m. ET.

All right, Minyans - have a great weekend!
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No positions in stocks mentioned.

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