Wow. No offense, but I couldn't disagree with you more. People have been saying for the last year now that equities are overheated, and they were early. But at some point, we are going to start seeing negative effects on earnings and profits since we are right at or past potential GDP.
I just sold out of everything. I made a little bit of money buying some oil stocks over the last few months. It seems like earning are flat or going down and stocks keep going up? S&P PE number is quite high as well. Why are stocks going up?
Oil stocks went up about 2% collectively today still Why did you sell them? IEA and EIA both recently forecast higher oil prices are coming sooner than previously predicted I think oil is fine to hold on to for the long term (5+ years)
Absolutely this. Everyone will say you're too early or whatever, but I think this is very wise. You're right about earnings, and there is still a reasonable fear that EMs are contagious. What do y'all think about Chesapeake? I personally think it's borderline overvalued at this point and want to cut my losses, but I was wondering if anyone had a different opinion.
What are the reasons for selling oil now? I'm trying to get a sense of the information one needs to look out for to buy and sell stock. Only started buying stock a few months ago and oil has been good to me so far
The major names - they're all bound to rebound from their January lows CVX, COP, APC, RDS.A, the most obvious ones Budgets should be released soon, I think it would be good to sell before then, but I'm in it not for day to day gains but decade to decade gain. I don't expect to sell soon I don't think
Those stocks haven't really gone down that much. They don't have the upside like the smaller players.
It's not a matter of macroeconomic outlook, but more of a situation where equity valuations are too high across the board in the short-term. I did a valuation on ExxonMobil, which I sold at $87 today, and could reasonably say its fair value wasn't much over $80.
I mostly trade based on technical analysis. Stocks crossing moving averages, breaking resistance, volume spikes, RSI rising, etc... I study the charts.
What do you think of FiatChrysler? I noticed it recently moved above moving average, and it has a decent valuation as well
I like the setup. The MACD line crossing over the signal is a technical buy signal. You can see how it goes up after the green MACD line crosses above the red MACD Signal line and it crosses above 0. The increased volume around that time is a pocket pivot indicating more institutional buying. It also crosses above the 100 ema, and it is testing the 200 ema. It closed kind of weak, so i suspect it will cool off a couple of days, but i think it will test that 8.40 range again. Just speculating though. Spoiler
