Not sure if this is right but it appears the Gasoline had a 2b reversal. Looks like FTO did too.

Jim

Looks like a 2b in XLE & OIH also.

Jim

Larry,
Looking back at price history for HOC and FTO they both have similar patterns of large quick moves off bottoms. Would it be advisable to take out of the money calls on these if the stocks react similar to past moves or would you still suggest deep in the money calls.

Gary

Gary,

I've been out of FTO and HOC for some time now. And since I'm not in it, I don't see how I could advice someone else to be in it. I'll get interested in oil again when the commercials decide to stop pounding on it, which may be as soon as Friday's report. We'll see.

Larry

I kind was thinking of HOC and FTO as refiners. Since refiners sell gasoline and the commercials have a 100 blees rating on gasoline I thought now might not be a bad time to buy refiners. The risk level is small since any close back below the recent low would probably signal the decline isn't done yet. But if either close above the recent high that would constitute a 123 reversal and FTO did have the 2b. I was thinking the odds were in favor of a reversal with little downside risk at this time. Bad logic?

Gary

So far HOC is starting to look like it's bottomed. Matter of fact almost all the oils are looking good today even with oil down. Looks like the oil stocks don't think that oil is going to stay down for long.

Gary

I heard a commercial this morning for a car dealership. It informed me that "experts" now say that gas will go back down to $1.15 and the SUV market is set to correct back up. So now is the time to buy that hummer before SUV prices go back up. I almost ran home to sell all my refiners. Then I noticed that almost all the refiners I keep tabs on are diverging positively from the price of oil and I remembered that the smartest money in the market are the most bullish they have been in about 4-5 years. So I decided to hold off on selling my refining stocks

Gary

The oil stocks are certainly not acting like gas is going down to $1.15

Jim