Since oil went up in spite of high supply, OPEC will flood the market even more. Oil longs have only made things worse for themselves.
The time to go long is after OPEC and others have driven some producers out of the market
Sentiment: Strong Sell
Not just PBR. Look at GEOS, FCX, RIG, etc. But since we have few organic buyers and more short covering buyers, we know the sentiment is still to the downside.
Just heard Cramer say that today was a short covering rally of the market in general and it was more pronounced for the oil sector
Don't think this will keep going up. Anytime a stock goes up fast it's short covering and it just means that the short trade will be back on.
it's a small dead cat bounce in the grand scheme of things. You are winners of the month, maybe 45 day winners. Anything more than that and you longs are net losers
Oil will end like coal and one day it will not even sell for cheap because environment will become the bigger issue.
Both oil and PBR are overpriced based on fundamentals and also technicals now. It's a short cover and dead cat bounce rally. Lower oil prices make it necessary for producers to produce more as they depend on the income and new technologies make it cheaper to drill.
So you tried to short and could not borrow? Buy puts
I am only trying to help you guys take profits now so you don't kick yourself. It will lose in a day what it gains in 5. Haven't you seen the chart?