Current Trade: Long OIH @ $88.00 with stop @ $80.96
This trade was difficult to enter aggressively given the lowered volume of the breakout. Yet, the pattern dictated a long entry on 4/16/2009. The trade is working out well, moving higher nicely. We remain cognizant of the low volume.
Trade Rationale 03/22/2009
I see the market as able to gain ground in the longer-term as money rotates into the energy sector. I believe oil will find a strong bid given the falling dollar and the need to invest in inflation hedging commodities. I am looking for the OIH to clear the $88 level breaking out of its 5-month channel base after crushing the index so far this year gaining 5.5% YTD as the Dow has dropped 17.1%. We highlighted these expectations in our recent Market Outlook.
0 comments:
Post a Comment