MV Weather Report: Cold Snap for Oil Only Temporary?
Rain or shine, we review the day's biggest stock stories.
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:
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"(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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