Bearish on Oil Stocks (XOI Index)

I believe the XOI index will decline to 1225 or less from its recent high of 1274.13 on 4/16/07. I expect this correction to take place within the next 8 weeks.

My system is indicating extremes in bullish sentiment and overbought readings in the XOI Index. As of 4/16/07, I have entered a short position in XLE at 62.65.

Position: Short XLE

Short Entry (4/16/07): 62.65
Exit: Pending
Stop Loss: 68.90
Time Stop: 8 weeks

 

BP ENER getting up there too

 

Feeling the same way about OIH, SLB, etc.

 

anyone not bearish oil?

 

Add X to that list. imo.

 

i'm not bearish oil, or gasoline, or natural gas.

I'm bearish these stocks. valuations are high and growth prospects are limited, considering these multiples need to be sustained by more significant commodity price increases (specifically oil and ng).

when oil is 85/barrel, then I think these have more upside.

 

hahah..
i tried to short that a few times (via puts).. failure, failure, failure.

maybe now is the time?

take a look at my blog. its documented.