Read This Before You Buy Oil Stocks

“I love the oil stocks,” a financial television talking head proclaimed yesterday… [Jeff Clark's Market Minute]( Read This Before You Buy Oil Stocks By Jeff Clark, editor, Market Minute “I love the oil stocks,” a financial television talking head proclaimed yesterday… “With all the unrest in the Middle East the price of crude oil is headed higher. And, with oil above $80 per barrel, the oil companies are printing money.” Maybe so. At this point, though, it seems a little late in the game to be buying the oil stocks. After all, the energy sector is up 15% so far in 2024. It’s up 30% from this time last year. Of course, that doesn’t mean that oil stocks can’t go even higher. They certainly can. But, the risk of buying them now, after such a large rally, is quite high. And, the potential reward may not be enough to compensate for that risk… Besides, if history is any sort of a guide, patient investors will get a much better buying opportunity a few months from now. Recommended Link [The #1 Crypto for 2024]( [image]( Charlie Shrem, known as one of the “Kings of Crypto” by Anderson Cooper on 60 Minutes… Is now making his [boldest crypto prediction to date.]( He believes that we’re entering the final crypto bull run, and 2024 will be your last chance to ever get rich from crypto. He’s discovered [five tiny cryptos]( that he believes could create generational wealth over the next few months. Some are even trading for less than $1! And it’s all thanks to a new government regulation just signed, which is poised to funnel $30 trillion into the crypto markets. Don’t get left behind… [Get His #1 Coin For 2024 FREE By Clicking Here.]( -- Let me explain… One of the best timing tools for getting in or out of the oil sector is the Energy Sector Bullish Percent Index (BPENER). This is a momentum-based indicator that lets us know when the sector is overbought and ripe for a correction, or oversold and a good time to buy. Take a look at this chart of the BPENER… [(Click here to expand image)]( A bullish percent index (BPI) measures the percentage of stocks in a sector that are trading with bullish technical patterns. It’s designed to measure overbought and oversold conditions. An index is overbought when it registers above 80 – meaning 80% of the stocks in the sector are trading with bullish patterns. An index is oversold when it drops below 30. The blue arrows on the chart point to when the BPENER rallied above 80 and then turned lower from overbought conditions. That action generates a BPENER sell signal. Usually, it’s a good idea to avoid owning energy stocks in this situation. We’ve had three BPENER sell signals over the past two years. Here’s how those signals coincide with the action in the Energy Select Sector Fund (XLE)… [(Click here to expand image)]( In each case, XLE trended lower in the weeks immediately following a BPENER sell signal. The signals don’t necessarily justify taking a short trade and betting against the energy sector. But, they always provide a much better buying opportunity a few weeks after the signal. The BPENER closed at 91 last Thursday – meaning 91% of the stocks in the energy sector are trading with bullish technical patterns. It doesn’t get much better than that. If it can’t get much better, then it can get worse. And, as soon as it gets worse, the BPENER will generate a sell signal. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Based on the few previous signals over the past two years, traders will do much better buying into the energy sector a few weeks after a BPENER sell signal than a few days before. There’s no real urgency to jump into the energy sector right now. We’ll likely have a chance to put money to work in the sector at somewhat lower prices in the weeks ahead. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](