The very ugly oil-dollar ratio.
The party lasted for years. Now the sector is expensive.
Massive destruction of value can happen in this sector.
Once a commodity is left for dead, things often get better.
“Stick of dynamite waiting for a match… which we now see with crashing oil prices.”
It always pays to be cautious when other investors get greedy.
Saudi Arabia is rattling the oil sector with a price war that many think is aimed at U.S. oil producers. But there’s an easier price war to win: with Canadian tar-sands operators.
Oil has tumbled more than 25%. Shares of oil companies have fared even worse. That creates opportunities. But there are several giant oil stocks to avoid right now.
Parabolic moves are fun while they last. The problem is they never last.
Two weeks ago, the NYSE McClellan Oscillator said stocks would bounce. And they did. Now, it says stocks are ripe for a pullback.