LIGHTEN UP ON ENERGY STOCKS IF DID NOT ACT ON OUR LAST CALL TO REDUCE ENERGY POSITIONS $CHK $FCG $HAL $HERO $HOS $KMI $USO $WFT #OIL $OIL
This post was just published on ZYX Buy Change Alert.
The Real Reason For Oil Run
On January 30th, the Rig Count Report showed a larger dip in working rigs than the consensus. This triggered a short squeeze. The short squeeze has continued. According our algorithms, almost all of the rise in oil since January 30th is short covering. The problem with short covering is that unless there is a new fundamental development, short covering eventually losses steam. Then the commodity typically falls to form a lower low. Especially when there is light volume prior to the onset of a short squeeze as is this in case in oil.… Please click here or the title below to read more.
February 3, 2015