Now that i have your attention, ignore the $15 comment. I've been trading the ERY the past 7-8 days and done well. It looks to me that ERX is building a base, but here is my concern, If any of you know what the $BPENER is (bullish percentages energy sector) you should know that when it moves about 80 that is a signal to start selling, we are over 80 now. That is a huge concern for me at the moment, i realize it can stay over 80 for weeks and months, but if OPEC plus Russia make a statement this week-end about cutting production it's a catch 22, I've read the supply issues which would normally be bullish and I'm seeing that volume on ERX has been 2x that of ERY, am i missing anything?
1. China is shutting down their coal mine. That means they don't need energy for now. 2. CNBC said gasoline will drop down to $1.
If OPEC countries has less revenue, will they cut down more oil production and get even less revenue ? No, they will increase production and fight for revenue. Oil is coming down to $25. ERX wil be $10 !!!