Why This is Not the Time to Buy Oil

My favorite oil trading indicator just flashed a “sell” signal. [Jeff Clark's Market Minute]( Why This is Not the Time to Buy Oil By Jeff Clark, editor, Market Minute My favorite oil trading indicator just flashed a “sell” signal. Traders who bought oil in early May – based on this [indicator’s buy signal]( – should lock in profits on the gooey black stuff right now. The price of oil is likely headed lower in the days ahead. Recommended Link [The Real Reason They Murdered JFK?]( [image]( Some people believe JFK was murdered because of his executive order 11110 that would have reduced the power of the Federal Reserve. Regardless if that’s true or not… The Fed is now involved in a new controversy that could have drastic consequences for the US dollar. [Click here to see the details]( because if you wait until July 26, it could be too late…. And you could end up holding a bunch of worthless dollars. [Click here to get all the details before it’s too late.]( -- Yes, the price of oil is up about 8% since we got that previous buy signal. Saudi Arabia is cutting back on production. The United States is looking to build up its strategic petroleum reserve. And, Goldman Sachs thinks oil is headed to $86 per barrel by the end of the year. So, there are plenty of reasons to be bullish on oil. But, there’s one really important reason to be bearish... The Oil Volatility Index (OVX) flashed a sell signal last Thursday. Take a look at this chart of the CBOE Crude Oil Volatility Index (OVX) along with its Bollinger Bands… [(Click here to expand image)]( Similar to the stock market’s Volatility Index (VIX), the OVX provides buy and sell signals whenever the price of oil pops outside of its Bollinger Bands (solid blue lines). Bollinger Bands measure the most probable trading range for a stock or an index. When a chart pokes outside of its Bollinger Bands, it indicates an extreme move – one that is likely to reverse. On the OVX chart, we get sell signals when the index drops below its lower Bollinger Band. Over the past year, we’ve had six sell signals (red arrows). The most recent one was generated last Thursday. Here’s how the price of oil behaved following the previous sell signals… [(Click here to expand image)]( The price of oil declined immediately following all previous sell signals over the past year. 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. However, the strongest signals occurred when West Texas Intermediate Crude (WTIC) was trading near its upper Bollinger Band. That’s the setup we’re looking at today. WTIC oil is trading near its upper Bollinger Band. And OVX has just generated a sell signal. This is NOT the time to buy oil. That time was several weeks ago – when the OVX flashed a buy signal. Now it’s time to sell oil. We’ll look to buy it again once OVX rallies back up to its upper Bollinger Band. Best regards and good trading, [Signature] Jeff Clark READER MAILBAG Are you making profits on oil with the latest rally? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… [Elon Musk May Have Just Changed Everything]( Quantum computing, 3D Printing and Gene-Editing… These are three of the most disruptive pieces of technology in recent times… But none of them compare to a project Elon Musk just released… One that could soon mint the world’s first trillionaire… [Learn all about it here.]( [image]( [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). © 2023 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](