{"id":9173,"date":"2018-04-05T07:30:05","date_gmt":"2018-04-05T11:30:05","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=9173"},"modified":"2018-04-05T07:30:05","modified_gmt":"2018-04-05T11:30:05","slug":"why-its-time-to-buy-oil-stocks","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/why-its-time-to-buy-oil-stocks\/","title":{"rendered":"Why It\u2019s Time to Buy Oil Stocks"},"content":{"rendered":"

The price of oil has been running higher lately.<\/p>\n

A barrel of West Texas Intermediate Crude (WTIC) traded for $59 six weeks ago. Today it\u2019s $65. That\u2019s a 10% increase in a month and a half. And it sure looks to me like oil is poised to run even higher…<\/p>\n

Take a look at this long-term chart of oil\u2026<\/p>\n

\"\"<\/p>\n

In January, oil broke out to its highest price in three years. It then came back down and retested the breakout level as support.<\/p>\n

Support held. Now oil is attempting to push higher again. If WTIC can break above January\u2019s high at about $66.50 per barrel, then the next resistance is all the way up near $78.<\/p>\n

That sort of move should ignite a strong rally in oil stocks which, thanks to the weakness in the broad stock market, are trading at the same level they were last August – when oil was priced at $50 per barrel.<\/p>\n

In other words, while oil is almost 30% higher than where it was last summer, oil stocks haven\u2019t gained any ground.<\/p>\n

Of course, the weakness in oil stocks is largely a result of the weakness in the broad stock market. The energy sector – as represented by the Energy Select Sector SPDR Fund (XLE) – peaked in late January along with the stock market. XLE traded as high as $77 per share back then. Today, the fund changes hands for just over $67.<\/p>\n

So, when the market\u2019s correction finally ends – which, if it didn\u2019t happen earlier this week, could be any day now – and buyers step up, oil stocks will likely rally along with the market. And if the price of oil breaks above $66.50, then oil stocks will have tremendous potential to play \u201ccatch up.\u201d<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Today, a response to yesterday’s Minute<\/em>, “The Correction Is (Almost) Over<\/a>.”<\/p>\n

\n

For what it\u2019s worth I am not so sure we will not have a further correction. This has been too good to really be true.<\/p>\n

I think long term is bullish in general but we need a reversion to the mean in general, so\u2026 But what do I know? I\u2019m not a millionaire yet.<\/p>\n

Another earnings season starts soon…<\/p>\n

– Jeffrey<\/strong><\/p>\n<\/blockquote>\n

How have you braved the past quarter’s volatility? Is the correction over… or just getting started? Send us an email right here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

While oil is almost 30% higher than where it was last summer, oil stocks haven\u2019t gained any ground…<\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-9173","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/9173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=9173"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/9173\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=9173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=9173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=9173"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=9173"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=9173"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=9173"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=9173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}