The Oil Stocks Now Join the Party
By:
Gary Wednesday, July 09, 2008 1:07 PM
I've been warning that the next sector to fall to the bear would be the energy stocks and sure enough the
XOI has now moved into a down trend. The oil service stocks are showing a double bottom breakdown. My guess is they will be following the rest of the energy sector soon.
The third chart is the US coal index. This is what a parabolic collapse looks like.
While everything else is breaking down the PM and mining stocks are both entering
uptrends. The
XAU is currently sitting right on support. Now would be a low risk entry for miners with a stop two boxes down on the
XAU chart.
Coincidentally gold is right in the middle of a timing band for a trading cycle low. I doubt that gold has too much downside from here.
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