As the rally in crude oil begins to stall near new highs, many
of the stocks based on everything from oil drilling and exploration
to equipment and services have not only pulled back. Many have
already returned to levels at which buyers, historically speaking,
have been tempted off the sidelines and into the market with some
S&P Oil & Gas Exploration & Production SPDRS
), for instance, has closed lower for two days in a row, and five
out of the last six. In fact, out of the last five trading days,
XOP has finished four of them in technically oversold
Down over one and a quarter percent on Monday and trading at
new, two-week lows, XOP earned a one-point ratings upgrade early in
the session, and is set to open on Tuesday with "consider buying"
ratings of 9 out of 10. The fund also has a
of nearly one and a quarter percent the short-term.
Representing the equipment and services end of the oil and gas
iShares Dow Jones US Oil Equipment & Services Index
) also has closed lower for five out of the last six sessions,
including two in a row as of Monday's close. Arguably, IEZ is even
more short-term oversold than XOP, having closed in oversold
territory five times in the past week and a half compared to XOP's
Like the S&P Oil & Gas Exploration & Production
SPDRS ETF, the iShares Dow Jones US Oil Equipment & Services
Index Fund ETF has a "consider buying" rating of 9 out of 10 after
earning a one-point ratings upgrade early in trading on Monday.
For traders looking for a leveraged way to trade the
in oil stocks, there may be no bigger bang for your buck than the
Direxion Daily Energy Bull 3x Shares
). ERX is leveraged three-to-one to the daily return of the Russell
1000 Energy Index, and sold off by one and a quarter percent in
Monday's session, trading down to its lowest closing level in two
Like XOP and IEZ above, the triple-leveraged ERX has earned
"consider buying" ratings of
9 out of 10
. The ETF also has a sizable, short-term, positive edge of more
than three percent.
Precise rules. Higher Edges. Full Disclosed Test Results.
to learn more about The Long Pullbacks Strategy by Larry Connors
and Cesar Alvarez