• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 5 days Can Solar Panels Regenerate Prairies?
  • 5 days Canada’s Carbon Capture Ambitions Have Hit A Roadblock
Editorial Dept

Editorial Dept

More Info

Premium Content

Why This Is Not The Right Time To Buy Energy Stocks

If there is one thing that history teaches us (other than that we don’t learn from history) it is that following a drop as severe and rapid as this in the stock market and commodity prices, there will be some incredible opportunities once things start to recover. The energy sector has been one of the hardest-hit areas of the stock market, so it is likely that some of the biggest opportunities will be there. That doesn’t mean, however, that investors should look to rush in and buy energy stocks indiscriminately.

I know that after a strong three-day rally FOMO will be running high, but patience and selectivity are essential at times like these, and right now is not a good time to buy.

For one thing, crude looks to be revving up for another test of the double low just above $20 that formed over the last couple of weeks. That may or may not hold but buying energy stocks just before we find out that important piece of information makes no sense at all. If it does hold, there will still be plenty of upside left after that is known, if it doesn’t there will be much better entry points before long.

In addition, if we look at the S&P 500 from an Elliott Wave perspective, things there look pretty bad right now.

The pattern so far has a classic Elliott look. A first wave was followed by a fifty percent retracement, then a bigger wave, also followed by a fifty percent retracement. In theory, that means that the fifth wave, the…

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News