OIL SPIKE
A couple of weeks back I spoke about crude oil pricing and stated that although in a strong uptrend, the parabolic nature of the commodity had not yet been evident. Well, in a matter of a few trading days and $20+/barrel added to the price (now close to $135/barrel), the angle of ascent has steepened to almost 80 degrees. That now constitutes as parabolic in my book. In a post yesterday, the strategy is to take advantage of the strength and bring your sector allocation back down to reality. Anyone long the sector must have a fairly substantial overweight in energy versus the other SPX sectors. You will probably give up some future gains, but those investors who survive are those who understand and put asset allocation as the first priority in investing.
3 years ago • Notes