XOM in the upcoming week?
- Thread starter bluud
- Start date
Oil and oil stocks are trending higher... on 15min, 1hr and daily timeframes. Maybe you shorted a bounce... maybe a breakout. In any case... you are fighting the prevailing trend.
http://stockcharts.com/h-sc/ui?s=XOM&p=W&b=9&g=0&id=p3583781856
XOM does trade in a channel, but the downturn in the channel wont be until late January.
The oil supply inventories lately have been bullish for oil prices, OPEC is going to meet soon (turn off the tap) and the cold snap is only 3-4 days away. In fact, the news has storms across the mid-west and then the thermostats get turned up.
XOM does trade in a channel, but the downturn in the channel wont be until late January.
The oil supply inventories lately have been bullish for oil prices, OPEC is going to meet soon (turn off the tap) and the cold snap is only 3-4 days away. In fact, the news has storms across the mid-west and then the thermostats get turned up.
I don't watch Jim Cramer on CNBC too often but did catch the first 10 minutes of his show last night. He spent several minutes harshly criticizing XOM, explained why he didn't like it and why Chevron and others are better companies to invest in. And then he said . . . "BUY XOM!"
The reason is that mutual funds have decided they want window dressing to show exposure to oil, but not being fully committed to the commodity, have chosen XOM since it's diversified and can do well even if oil falls. These mutual fund families have to make large buys of XOM to get a decent position, thus driving the price up. This then leads to XOM being a higher percentage of the S&P index (which is market cap weighted), thus leading to more purchasing by index funds.
Will XOM get back to $74. Probably, but how long do you want to wait? Cramer thinks it will trend higher through year end.
The reason is that mutual funds have decided they want window dressing to show exposure to oil, but not being fully committed to the commodity, have chosen XOM since it's diversified and can do well even if oil falls. These mutual fund families have to make large buys of XOM to get a decent position, thus driving the price up. This then leads to XOM being a higher percentage of the S&P index (which is market cap weighted), thus leading to more purchasing by index funds.
Will XOM get back to $74. Probably, but how long do you want to wait? Cramer thinks it will trend higher through year end.