5 replies to this topic

[A-ha]

I talked about this on the blog yesterday but wanna repeat it here as it is getting gross. Crude oil kept making higher highs while OIH and XLE were making lower highs in the last couple of days. This sort of divergence combined with trend line studies to spot exact entries is one of the best tools you can use in your trading especially Oil and other commodities. I am short OIH and a bunch of stocks in the sector ....heavily.

Edited by xD&Cox, 25 January 2007 - 10:50 AM.

[IndexTrader]

I always think that OIH trades better with natural gas.....QG. Of course, crude oil and natural gas don't necessarily trade in line. IT

Edited by IndexTrader, 25 January 2007 - 10:52 AM.

[eminimee]

i went short vlo the other day via puts and was watching it for the same divergent reasons.

http://stockcharts.c...6915&r=2607.png

[vitaminm]

UCR/DCR

http://finance.yahoo...cr us...0&a=&c=

[vitaminm]

UCR/DCR

http://finance.yahoo...cr us...0&a=&c=

$WTIC/UCR/dcr

http://stockcharts.com/h-sc/ui?s=$WTI...id=p95560419291

[arbman]

I always think that OIH trades better with natural gas.....QG. Of course, crude oil and natural gas don't necessarily trade in line.

IT

That's true, most of the drilling is for the natural gas, not for the crude and there used to be a real shortage in the natural gas...