Wednesday, July 9, 2008
The oil stocks now join the party
I've been warning that the next sector to fall to the bear would be the energy stocks and sure enough the XOI has now moved into a down trend. The oil service stocks are showing a double bottom breakdown. My guess is they will be following the rest of the energy sector soon.
The third chart is the US coal index. This is what a parabolic collapse looks like.
While everything else is breaking down the PM and mining stocks are both entering uptrends. The XAU is currently sitting right on support. Now would be a low risk entry for miners with a stop two boxes down on the XAU chart.
Coincidentally gold is right in the middle of a timing band for a trading cycle low. I doubt that gold has too much downside from here.