Weekend July 23, 2017
Stock markets are still soaring but are so high I am reluctant to enter here. So let's look at the worst performing area, energy, and see if it may offer an opportunity.
CRAK
On balance volume is leaping off the chart at bottom. The refiners look good.
FRAK
The Presidents of both SLB and Anadarko were griping in print that Wall Street was pushing too much money to the frackers resulting in too much oil and depressing the oil price. Just as they said that FRAK is challenging its 10 week MA downtrend, This sort of thing is what we are looking for, a start of a change in trend.
Canadian Dollar
Canada and Australia are both commodity exporters. The currencies reflect the strength of the export prices. So the Loonie is looking good for commodity prices.
/bullish Percent Energy Stocks
Whoa, a break out big time! Let's look at the ETFs for this sector next.
XLE Energy Shares
The time to buy here is fast approaching. Watch MACD and PMO below for cross overs.
XES Energy Service Shares
I suspect XES is the better bet here. Note the price jumped Friday. Friday was options expiration and I did not like the way the oil price closed.But energy shares should lead.
And I like XES better than XLE. It is much closer to the February 2016 low. It is one fourth the price and offers a lot more upside percent potential. And when oil gets going the service companies jump higher than the producers.
USO Oil Fund
The downtrend is still in force but both MACD and PMO may be poised for reversal.
WTIC
Not yet, be patient, the Friday close does not look as bad on this weekly chart.
WTIC Daily
Price clearly failed at the downtrend line on Friday. And below the MACD and PMO look to be facing big resistance. This week will be important.
Apache APA
Simply put, will APA stay above the downtrend line or fall back to the lower trend line? This week will tell the tale.
Frontline FRO
F
Frontline FRO is the fourth largest ocean going oil shipping firm. The owner controls 52% of the shares which pay a 9.5% dividend. The firm is trading for 62% of book value. The owner believes the oil price is bottoming. He is looking to acquire other firms at discounts similar to FRO. After an initial bounce, shares pulled back sharply.
Natural Gas
Natural Gas is still above its February 2016 low. Again we wait.
Social Mood
Socionomics Institute has long noted the manufacturer and acquisition of powerful cars at Market tops, the Duesy Auburn Cord in 1929, the muscle cars of the late 1960s and now the re emergence such as the formerly most powerful Challenger Hellcat. Yes formerly….
Now here is one for the books. The Hellcat has been displaced by its own Dodge Demon 840 BHP (on 100 octane gas) doing a sub ten second 140 mph quarter mile
The distinction is that the Demon is specially constructed for drag racing, even eliminating the passenger seats! Amazingly it carries a warranty!
https://gotmdm.com/auto/2017/04/dodge-challenger-srt-demon-840hp-v8-hemi/
It is the fastest quarter miler ever certified by the NHRA, even faster than the Tesla.
My recollection from the 1960s is that if the Dealer found you had intentionally raced your car, that voided you warranty.
Now in a complete mood reversal,Dodge wants you to race your car! As Tim says in the video, not a sports car, not a pony car, only a street strip motor car. The last tenth, the last tenth of effort, drag slicks on a production car. First trans brake in a production car, all new engine, 2.7 L supercharger ( about the size of a mid sized SUV 4 cylinder engine), everything is calibrated to launch, he wants you to spin the tires , 1.8 Gs off the line, pulls a wheelie, 5.1 seconds to 100 mph, so powerful the NHRA banned it, so where is it to be used I wonder
Well there is a social mood peak for you, a drag race car that cannot be officially drag raced!
Dan Neil drives one through the quarter mile in this weekend WSJ
denislelam@gmail.com
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