For the last three days XOM has been closing higher constantly, I had shorted XOM Wed. near 74$ still holding on to it, yet it closed near 77$ today, any suggestions on XOM?! specially for next week! and tomorrow!
I'm not trying to be a smart ass, but if you have to ask unknown people at a website what you should do you probably should have covered already. Simple answer: What was your reason to short it? If that reason didn't work out the way you expected you should have covered.
im not asking, to do what they say ... i think it will drop that is why im still holding on to it ... i was just wondering what others think about it and how right or wrong i might be, period
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.
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.