Wednesday, 18 April 2018

1pm update - oil and energy

US equities remain a little choppy, and due a cooling wave. Meanwhile, WTIC is currently +1.9% in the $67s (intra high $68.44). The energy sector ETF of XLE is currently net higher for the week by 3.1% in the $73.60s.

USO daily

XLE weekly


WTIC/USO: the post Syrian attack cooling sure was brief and minor. We've already seen a push into the $68s. Its effectively open air to psy'70. There will be huge price cluster resistance within 70/75.

*Jim Iuorio notes he is looking for a topping pattern, and looking to sell... with a buy target of $63s.

XLE: energy stocks are naturally being helped via some pretty significant upside in oil. XLE looks set to challenge and exceed the Jan' high. I favour the quartet of APC, PSX, PBR, and LNG. More speculative; MRO, RIG, CNX, and CHK.

notable energy stock: RIG, daily

Transocean is well on the way to soft target of the $13s. Things really only get interesting >16.66. The cautious will leave this one alone.

Lunchtime trade...

Devon isn't one of the energy stocks I generally highlight, but its a fine company. I really like this trade, not least as there is plenty of time on the options clock. FPE 14s. Y 1.0%. NM 6.4%. Earnings May'1st.

Equities: sp'60min

Price action remains minor chop. Cyclically, we'll be inclined to cool this afternoon. The fed beige book due at 2pm might be an excuse.