• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Oil, Energy, and Related Stocks of Interest
Stock

Oil, Energy, and Related Stocks of Interest

by February 26, 2023
by February 26, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

After the CORE PCE numbers came out on Friday, the market had the expected reaction of selling off in anticipation of a more aggressive Fed.

We find the reaction less than surprising. But what we do find more surprising is that the metals sank along with equities, although gold fell less than 1% while silver fell over 2.5% and the S&P 500 fell just over 1%. Oil, on the other hand, and the oil sectors (exploration and service) all rose. 

Last week I wrote about natural gas (UNG) and how that had a textbook blow-off bottom at $7.40 a share. Natural gas closed the week up over 20% from that price.

The energy sector, like all commodities, cycles within a cycle.

Speaking of cycles, the indices only rallied into the 23-month moving average or 2-year business cycle resistance (point where they are guilty until proven innocent as far as a soft landing) before last week’s painful retreat. Natural gas was left for dead, as it too broke well below its 2-year business cycle. And, to date, we do not really know if this rally is like the indices–a bear market rally or the beginning of a more sustained up cycle.

What we do know is that OIH, XLE and the U.S. Oil Fund (USO) all closed green on Friday, and basically unchanged for the week. Furthermore, all are ABOVE their 23-month moving average or 2-year business cycle.

Will energy continue to go up? And what does that mean for the market?

The Oil Service (OIH) chart, although the price sits under the 50-DMA, is still in a stronger phase than the USO chart.

OIH shows the 50-DMA above the 200-DMA. The USO charts shows the 50-DMA under the 200-DMA. OIH is in a warning phase while USO is in a bearish phase. (Check out our website for more on phases or pick up a copy of Plant Your Money Tree: A Guide to Growing Your Wealth.) However, OIH underperforms the benchmark according to our Stockcharts Plug in Triple Play indicator. And USO is now outperforming the benchmark.

Our Real Motion Indicator, also a StockCharts plugin, indicates a momentum diversion in USO, as the momentum recaptures its 50-DMA before the price does. Generally, when we see both a divergence in momentum and in triple play with an outperformance, we wait for a price confirmation. In USO, a move over 68.00 confirmed, would be a signal to buy.

Most likely, OIH, already in better shape, will move up as well.

The bigger point is that with natural gas potentially bottoming, oil potentially ready to go higher, and the oil services sector already in good shape, this is the place to watch this coming week. And, most importantly, we see commodities taking turns in leadership. That tells us the super cycle is getting ready and that commodities offer great active trading opportunities.

For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

IT’S NOT TOO LATE! Click here if you’d like a complimentary copy of Mish’s 2023 Market Outlook E-Book in your inbox.

“I grew my money tree and so can you!” – Mish Schneider

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

In her latest video for CMC Markets, MarketGauge’s Mish Schneider shares insights on the gold, the S&P 500 and natural gas and what traders can expect as the markets remain mixed.

Mish and Charles talk food inflation and the Metaverse on Making Money with Charles Payne!

See Mish present “Best Trade, Worst Trade, Next Trade” on Business First AM.

Mish shares insights on the US Dollar, euro, gold and natural gas in this appearance on CMC Markets.

Mish shares three charts she is using to measure inflation using the commodities markets on the Wednesday, February 14 edition of StockCharts TV’s The Final Bar with David Keller!

Mish gives you some ideas of what might outperform in this new wave of inflation on the Friday, February 10 edition of StockCharts TV’s Your Daily Five. She has picks from energy, construction, gold, defense, and raw materials.

Read about Mish’s interview with Neils Christensen in this article from Kitco!

ETF Summary

S&P 500 (SPY): 390 support with 405 closest resistance.Russell 2000 (IWM): MA support around 184. 190 has to clear.Dow (DIA): 326 support, 335 resistance.Nasdaq (QQQ): 300 the pivotal area 290 major support284 big support 300 resistance.Regional banks (KRE): 65.00 resistance, 61 support.Semiconductors (SMH): 228 support 240 pivotal 248 key resistance 248 resistance 237 then 229 support.Transportation (IYT): Most interesting economic sector-Confirms back to a Bullish phase keeping bears on their toes and bulls hopeful.Biotechnology (IBB): 125-130 new range.Retail (XRT): 66-68 huge area to hold if the market still has legs.

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

You Might Also Like
  • Gold and Silver Are Crushing the S&P 500! Here’s What You Need To Know Now!
  • Substantial Deterioration In Number of IT BUY Signals
  • What A Week! This Small Cap Party Might Just Be Getting Started
  • The Smart Money Changes Gears; As Tech Weakens, New Leaders Appear
Share
0
FacebookTwitterPinterestWhatsapp

previous post
GOP reps get birds-eye view of migrant crossings during border tour, mull legislative fixes to tackle crisis
next post
Let The Charts Do The Talking

You may also like

Will Rising Oil Prices Smack the S&P 500?

August 2, 2023

Semiconductors Have More to Prove Before Breakout is Believed

January 25, 2025

Week Ahead: NIFTY Stares At Crucial Support; RRG Hints At...

February 8, 2025

Poor Natural Gas

January 26, 2023

Art and Science: 3 Key Ratios in the Markets

March 24, 2023

DP Trading Room: Long-Term Outlook for Bonds

April 21, 2025

Will Trump’s Foreign Film Tariffs Crush Streaming Stocks? What You...

May 6, 2025

What A Week! This Small Cap Party Might Just Be...

December 2, 2023

Failed Bearish Patterns are Bullish for S&P 500!

May 29, 2024

When to Buy in May

May 2, 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 2,632 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

    How William O’Neil – The Legendary...

    August 26, 2023

    S&P 500 Approaches 100-Day Moving Average:...

    April 20, 2024

    Double Tops on Bitcoin and the...

    February 14, 2025
    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