There have been bottom extensions in heating oil and natural gas, both of which have fallen further and faster than any of the related crude oil or gasoline markets:
This has the usual meaning – we expect that the current declines will cease (or at least pause) hereabouts and so you should protect short-sold profits in energy that were advised in the January 6th edition. We have actually just taken profits.
We will also now start to explore the long side of these markets. Initially we shall just look for a ‘bounce’ but there may be more than that to come. Don’t go ‘all in’ just yet, but start buying now and wait to see if any signs develop of a reversal. If so, become more aggressive.
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
