WHY I am adding/liking OIL/GAS stocks vs GDX or SPX

well this is constructive

doin nice today but perhaps miners and oil gas stocks have one 5-10% ish plunge "IF" there is no stimulus deal done. will hold my modest longs, we see

Senor

senor i agree w/your assessment of this sector , i believe it will be a big performer in 2021 . inspite of all the green talk , oil remains at the center of the financial universe.. 

dharma

senor i agree w/your assessment of this sector , i believe it will be a big performer in 2021 . inspite of all the green talk , oil remains at the center of the financial universe.. 

dharma

Yeah I think even a Biden win had been factored in for the most part, do some research and pick your stocks and buy weakness is what I have done and am doing slowly. Asian/Indian economies doing pretty well and increasing oil usage, as always DYODD

Senor

 

senor i agree w/your assessment of this sector , i believe it will be a big performer in 2021 . inspite of all the green talk , oil remains at the center of the financial universe.. 

dharma

Yeah I think even a Biden win had been factored in for the most part, do some research and pick your stocks and buy weakness is what I have done and am doing slowly. Asian/Indian economies doing pretty well and increasing oil usage, as always DYODD

 

Senor

 

also hadik has 2021  as a war cycle year . he sees the middle east as a powder keg.  not difficult to see.  i remember oil and gold working together as a hand to a glove in the 70s   i think that will be a factor along w/the commodity sector. one can buy cvx w/7+% div and xom w/10%+ div seems like they are totally out of favor.  . oil and oil stocks seem cheap. hey i am all for the new tech and a green environment .  but oil usage is not going to disappear overnight.    there is money to be made there

nice action in XOP/oil stocks today vs miners/S&P, as I have said the big picture ratio analysis is about ab oversold/extreme as at any time in decades

Senor

Bueno day with XOP up over 5%, sure looks like the recent drop was corrective and with today's action likely over and a significant rally leg up could be beginning

Senor

more evidence today of a bigger picture "character change" in oil stocks developing. XOP barely up with crude down over 2%, XOP up vs miners again, IMO the "ratio analysis" extremes is IMO so far starting to show a change, baby steps so far

Senor

Five up from March, ABC down ending? That's my preferred count

Senor

Text book. Well done!

Will be interesting to see how it plays out.