AMEX Oil Index at a Good Buying Level
The sell-off in oil over the past two weeks has sparked a minor rebound in stock prices. Looking at the AMEX Oil Index (XOI), oil has dropped to a level it has seen 3 other times since last July. Each time before this, it has rebounded to ultimately set new highs. The index's RSI(14) is hitting it's lowest reading in the past two years, as its Stochastics reading. This all signifies a buying opportunity in oil, if you still believe the commodity is still in a secular bull market. If it fails to rebound from here, however, something may be changing in a long-term basis.
The Trade 4 Cash system rebounded 1.34% on Friday, finishing in the black for the week. After hitting a drawdown level of around 27%, Trade 4 Cash is clawing its way back up, and is currently sitting at a 19% drawdown. Nine out of its last ten closed trades have been winners.
Futures are looking for direction so far this morning, as the earnings season continues.
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