Just as “orange is the new black”, I think that “oil producers are the new gold miners.” It doesn’t sound quite as good, but here’s my point:
I’ve written before about the failing shelves of support with various commodities. Silver led the way in mid-September……
Followed by gold a couple of weeks later………
My premise is that oil is next in line. It sneaked an iota beneath its support recently, but my view is that there’s a big swoosh forthcoming:
Thus, my zeal for shorts in the energy sector is stronger than ever. I show XOP below, but merely as a representative of the sector. I’m actually not that keen on XOP itself as a short (or XLE or ERX, for that matter). I am inclined toward individual energy-related shorts, because I think they’re going to suffer the same gruesome fate as precious metals miners have. I view GDX as a sneak preview of what’s coming up for energy companies.
via Zero Hedge http://ift.tt/1uWxQbp Tim Knight from Slope of Hope