XOP Down, XOM Up
Oil sector proxy XOP, posted outside-down (key reversal) while Exxon (XOM) closed higher.
If we’re in the middle of a reversal, this is normal.
Parts of the sector are already heading lower while typically, the larger caps are the last to complete the change.
This interview with Carter Worth, even though it’s short at only two-minutes thirty seconds, paints not-so-good picture.
He says in a typical scenario that’s repeated twice since the late April ’20 lows, oil has declined by 16% – 20%.
When asked how the equities would do, he hesitates, then says ‘It’s not worth the risk [to be long]’.
It’s a polite way to say they’re likely to get whacked.
By now, everybody’s heard the news on Moderna.
Trouble for Moderna was spotted a while back and discussed in this post … along with a prediction that class-action may be forthcoming.
Our stopwatch is still ticking.
The account positions are short Oil & Gas XOP, using DUG as the vehicle (not advice, not a recommendation).
So far, its been a lot of banging around without much progress either way. However, at this point, a new low for DUG, below today’s low would signal trouble for the short side.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
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