Hello Russell, some years ago I studied the investment philosophies of the "old school" traders Jesse Livermore, Bernard Baruch and Gerald Loeb. One of the themes that came out of that study is that, when the market turns down, those stocks that go down the least will be the ones that go up the most when the market turns back up again. In the tech space, I guess you would equate this to Microsoft, for example.
With this in mind, do you think this makes energy stocks that much more impressive? From late last year the market as a whole is in a clear top-left to bottom-right bear market trend on the charts. Not only are energy stocks behaving as the "least weak" in this overall market trend ... they are showing great strength, with a clear bottom-left to top-right bull market trend on the charts. When a sector of the market performs so strongly in the face of the overall market being in a bear market trend, does it make it a sector to be all-the-more bullish about?
Is this price action screaming that -- when it comes to energy stocks -- it is prudent to adopt the opposite philosophy of the overall market, and "buy the dip"?
While there are many causes of the present inflation the most immediate one is the supply-side problems in commodity markets exacerbated by the "Special Military Operation" in Ukraine.
I think that you can only turn bullish if/when a ceasefire happens in Ukraine.
Hello Russell, some years ago I studied the investment philosophies of the "old school" traders Jesse Livermore, Bernard Baruch and Gerald Loeb. One of the themes that came out of that study is that, when the market turns down, those stocks that go down the least will be the ones that go up the most when the market turns back up again. In the tech space, I guess you would equate this to Microsoft, for example.
With this in mind, do you think this makes energy stocks that much more impressive? From late last year the market as a whole is in a clear top-left to bottom-right bear market trend on the charts. Not only are energy stocks behaving as the "least weak" in this overall market trend ... they are showing great strength, with a clear bottom-left to top-right bull market trend on the charts. When a sector of the market performs so strongly in the face of the overall market being in a bear market trend, does it make it a sector to be all-the-more bullish about?
Is this price action screaming that -- when it comes to energy stocks -- it is prudent to adopt the opposite philosophy of the overall market, and "buy the dip"?
I agree with your analysis
While there are many causes of the present inflation the most immediate one is the supply-side problems in commodity markets exacerbated by the "Special Military Operation" in Ukraine.
I think that you can only turn bullish if/when a ceasefire happens in Ukraine.