• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 2 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 2 mins Peak Shale Will Send Oil Prices Sky High
  • 2 hours "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 5 mins Charts of COVID-19 Fatality Rate by Age and Sex
  • 5 hours Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
  • 5 hours CDC covid19 coverup?
  • 1 hour Oil and gas producers fire back at Democratic presidential candidates.
  • 20 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 7 hours Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 21 hours Who decides the Oil costs?
  • 1 day Blowout videos
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Time to Sit Back and Plan Your Next Investment strategy

With crude oil and crude oil-related stocks exhibiting nearly free-fall characteristics, unless you’re willing to play the short-side after an almost three month sell-off, this week it may be best to sit back and plan your next investment strategy while waiting for the markets to reach strong value areas.

This week’s sell-off in crude oil and energy stocks was strong enough to pull the rest of the U.S. stock market down. This is a sign that money managers are beginning to sit up and take notice. Investment managers may have been complacent throughout the year because the liquidity provided by the Fed made equities the best game in town.

Stable and up trending crude oil prices may have also been looked upon as signs of an improving economy. Even the early break from the high in June may have been perceived as good news because many economists and analysts may have read this weakness as good for the economy because it led to lower gasoline prices which is beneficial to the consumer.

With nearby crude oil trading at 50% of its two-year range and a few of the oil-related stocks rapidly approaching 50% of their 2014 range, now may be the time to start planning a strategy to take advantage of stock prices that may be trading in a value zone at the same time crude oil reaches a bottom.

 

Since these oil stocks are highly correlated with the price of a barrel of crude oil, there is a strong chance that a turn in the price of crude oil…




Oilprice - The No. 1 Source for Oil & Energy News