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May 3, 2005
Oils in trouble, Tues., May 3, 2005, 5:57 PM
As you know, I warned readers at the top of the price cycle for the oil sector, and I have also followed up with a weekly focus on these stocks (GCS sector 10). Now I'm going to say that I think if you are long this sector you had better be careful. The action of the last hour today indicates to me these oil stocks are going to be several percentage points lower in the next week.
XLE was down 2.35 pct today to 40.31, and much of the weakness occurred in the last hour. The big boys CVX and XOM are leading this group south. Moreover, note the China oils, PTR and CEO, which are struggling.
XLE: Next stop 38.
Here is the weekly data chart for XLE.
Here is a chart of the XLE for the past two months with the RSI indicator showing (me at least) that the price cycle has further to go on the downside, with the chart overlaid by comparative prices of several other stocks (all in the Cara Global Best 100 btw).
10101010 Oil & Gas Drilling Drilling contractors or owners of drilling rigs that contract their services for drilling wells.
10101020 Oil & Gas Equipment & Services Equipment manufacturers, including drilling rigs and equipment, and providers of supplies and services to companies that drill, evaluate and complete oil & gas wells.
10102010 Integrated Oil & Gas Integrated oil companies engaged in the exploration & production of oil and gas, as well as at least one other significant activity in either refining, marketing and transportation, or chemicals.
10102010 additional list.
10102020 Oil & Gas Exploration & Production Companies engaged in the exploration and production of oil and gas not classified elsewhere.
10102020 additional list.
10102030 Oil & Gas Refining & Marketing Companies engaged in the refining and marketing of oil, gas and/or refined products not classified in the Integrated Oil & Gas or Independent Power Producers & Energy Traders Sub-Industries.
10102040 Oil & Gas Storage & Transport Companies in storage and/or transportation of oil, gas and/or refined products. Includes diversified midstream natural gas companies facing competitive markets, oil and refined product pipelines, coal slurry pipelines and oil & gas shipping companies.
Posted by Posted by Bill Cara on May 3, 2005 05:56:16 PM | Category: 10 Energy