GUSH has come down to test the 50 weekly. Also near the April low. Inflation is a main theme for 2021 with Oil the strongest sector this year. A big splash is coming next and the GUSH 2021 target is shown at $200. Weekly
Very nice!!! I still think we can see lower before it turns, but trying to get the bottom exactly is not that important. Prices are attractive and I'm continuing to build and add to positions.
Holding RIG and GUSH. When I think it is "last minute" I'll enter XLE Calls also.
We can see with this chart that the trend has been up in Oil shares for a year and a half so far. So what I am saying is trade with the trend. It's been hot and it's getting ready to be explosive.
Its been testing 50 day on each pullback since Nov elections. Its been a buy at those levels. We'll see if that remains true, a 10% pullback would bring us down to 200 dma. If you look at the trend since 2000, we are at the top of the channel, bottom of channel is around 3250. Yikes
Because GUSH is leveraged assume it could see lower. It's tough to pinpoint what level exactly for the turn. Possibly as low as $35. There will be bounces too, maybe your $48. Shorts may pile in which is exactly what we want to supply the fuel to run this oil trade.
SPX didn't even make the 50 daily average. I thought we could see an August swoon after Friday the 13th, and we did but I also felt the selling would be shallow and it was. SPX new highs yes but momentum is waning.
Remember the Delta variant was a government ploy. The timing was convenient and they chose this variant to generate some fear. They do this to induce people to be vaccinated. I could see this and that is why I haven't been looking at the short side and instead continue to take advantage of the dip to position in Oil, the best reopening trade.
Big gap for GUSH at $200 to fill this year!
ReplyDeleteNice update SC! Holding oxy, oih, oil and xle😀
ReplyDeleteVery nice!!! I still think we can see lower before it turns, but trying to get the bottom exactly is not that important. Prices are attractive and I'm continuing to build and add to positions.
ReplyDeleteHolding RIG and GUSH. When I think it is "last minute" I'll enter XLE Calls also.
thanks for the update! Have a great week!
DeleteAll the best to you as well! Thank you!!
DeleteWe can see with this chart that the trend has been up in Oil shares for a year and a half so far. So what I am saying is trade with the trend. It's been hot and it's getting ready to be explosive.
ReplyDeleteBought GUSH $59.60.
ReplyDeleteSc
ReplyDeleteYou are expecting GUSH to fill the $ 200 gap by the end of this year
That would be a nice move
Yes, excellent move! Oil a top focus
DeleteOil is more of a bigger inflation play, also I have another trade idea that is short term. This could be a lot of fun!
ReplyDeleteWhen will you be posting your short term idea?
ReplyDeleteIt should be ready this week or next week.
DeleteGreat! Thank you.
ReplyDeleteGold and Silver have come down quite a bit. You speak of an inflation trade with Oil. What do you think of the metals?
ReplyDeleteGold, Silver consolidation for the last year, last summer. Silver I think will likely challenge the 2011 highs $40's. That might be a few years away.
Deletesc,
ReplyDeletePlanatir--just bought 50 million in gold bars
Reason I go with Oil, it's the top trend. It's where the action is. Reopening, inflation etc..
ReplyDelete$110 Oil is a first target but also the run likely to go all the way to test $146, the 2008 high.
ReplyDeletesc
ReplyDeletethis will happen in the next three to six months???
We should see the first target this year, some consolidation period and then more later.
DeleteGUSH has hit the 50 weekly $57.76. RIG not quite yet.
ReplyDeletesc,
ReplyDeleteIs this the start of a correction---sure looks like it?
Its been testing 50 day on each pullback since Nov elections. Its been a buy at those levels. We'll see
Deleteif that remains true, a 10% pullback would bring us down to
200 dma. If you look at the trend since 2000, we are at
the top of the channel, bottom of channel is around 3250. Yikes
sc,
ReplyDeleteare you looking to average in on GUSH at this level???
Not yet, but I'll add one more batch soon. Give a little time in between the buys.
Deletesc,
ReplyDeleteI am guessing --you are looking for 48 on Gush to average in.
I know we got a to double top before we sell off in to SPX 4350 level
I am hoping GUSH will bottom out at that level
Because GUSH is leveraged assume it could see lower. It's tough to pinpoint what level exactly for the turn. Possibly as low as $35. There will be bounces too, maybe your $48. Shorts may pile in which is exactly what we want to supply the fuel to run this oil trade.
DeleteSC, do you think we are going to see one more high in the S&P?
ReplyDeletesc,
ReplyDeletewe should be running here and we are not moving that quickly
we could have pain to the downside
lets wait and see?
SPX didn't even make the 50 daily average. I thought we could see an August swoon after Friday the 13th, and we did but I also felt the selling would be shallow and it was. SPX new highs yes but momentum is waning.
ReplyDeleteRemember the Delta variant was a government ploy. The timing was convenient and they chose this variant to generate some fear. They do this to induce people to be vaccinated. I could see this and that is why I haven't been looking at the short side and instead continue to take advantage of the dip to position in Oil, the best reopening trade.
ReplyDeleteNew chart posted!
ReplyDelete