• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock This Bull Market Should Be Doing What?
Stock

This Bull Market Should Be Doing What?

by February 17, 2023
by February 17, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Every bull market always has something that is missing. The market starts in a narrow group of industries and broadens out. Since October, the market has been rallying. February has seen a sideways trend develop.

One of the big opportunities we are facing as a society is the rate of change moving from fossil fuels to electric. I continue to expect an oil supply short fall to be a problem as old fields expire and new exploration is not being pursued. Marginal production from reservoirs like the Bakken and Permian are topping out at this price level.

The chart of the exploration and production ETF is testing the uptrend line to end the week on options expiration day. Is there enough oil and gas demand to get this trend of lower highs since November to reverse? The larger picture shows declining volume suggesting investors are focused elsewhere for more gains.

The PPO has rolled over at zero and is in negative territory again. The PPO wave in January barely made it into positive territory. So far the chart looks concerning. Do we buy it on the test of the uptrend, or is the economy weakening under the surface, limiting demand and upside for the liquid energy industry group?

Globally we are seeing demand come off, with inventory builds starting to show up. Analysis groups like the IEA are predicting increased demand. In my opinion, it is very odd to see the oil charts come off especially with a tight supply backdrop, if the economy is as strong as we are seeing by labor and spending.

When we broaden out a little to the rest of the XLE, similar look, but testing the recent low. The uptrend seems clearly broken on this chart. The PPO rolling over at zero, suggesting more weakness ahead. Volume is declining. The PPO trend is being threatened right at the zero level.

For me, I keep wondering why isn’t energy part of the rally? That will continue to bother me. Oil is the world’s largest economic indicator so it needs to revert higher soon if this bull market is going to continue. If it doesn’t, is the Fed starting to succeed at slowing the economy? Good questions that we’ll know the answer to shortly.

The Nasdaq 100 and the S&P 500 are both closing near three week lows on the weekly chart. Stay tuned to see if the economy is weakening as oil suggests.

You Might Also Like
  • A Supercharged Stock Market Rally: Catch These Stocks Before They Get Away
  • The Mighty Have Fallen! TSLA and NVDA On The Rocks
  • VIX Index Above All of Its Futures
  • Hidden Gems: Bullish Patterns Emerging in These Country ETFs
Share
0
FacebookTwitterPinterestWhatsapp

previous post
The impact of IoT on healthcare costs and resource utilization
next post
Year of the Big Swing and Month of the Small Flag

You may also like

Personalized Options Trading Strategies: Discover High-Yield Covered Calls and Spreads...

April 29, 2025

BITCOIN Rally Picks Up Steam, What’s Next?

February 27, 2024

Gold Breakdown

February 4, 2023

Podcast on Macro to Micro in Markets

May 29, 2023

Rules-Based Money Management – Part 2: Measuring the Market

April 25, 2024

New Highs Coming or Will We Collapse? What Say You,...

July 26, 2024

The SCTR Report: Carvana’s Gain Makes It Worth a Revisit

September 19, 2024

SHOP Stock Ready to Surge: An Options Strategy to Take...

September 18, 2024

Zillow’s New Strategy Looks Like a Winner; Is the Stock...

June 6, 2023

Why Buy DBA: Agricultural Fund ETF?

March 28, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Two Options Plays Amid Market Selloff

    April 4, 2024

    Growth Stocks Drop Again — and...

    January 5, 2024

    A Strong Week: Stocks, Gold, and...

    October 18, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here