Can the Energy Sector Bullish Run Continue?

Tom Gentile

Posted in Big Picture

By: Tom Gentile on May 17th, 2022 • 2 mins read

Energy Sector Positive for the 6th Day in a Row

When it comes to analyzing the big picture on Energy and Oil I look at the chart on United States Oil Fund, LP (USO).

This fund, per Yahoo Finance, invests primarily in futures contracts for light, sweet crude oil, other types of crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum-based fuels.

I have a chart for you to observe on USO Year to Date for 2022.

Image 29
USO

Contrarian vs. Trend Trader

I’ve written recently about what it means to take a contrarian view to trading or what it means to be a trend trader.

A contrarian trader could hear me say I am still bullish Energy and Oil and think well then I need to do the opposite. If Tom and many others who learn from here get more or are bullish, that may mean it is due for a pullback.

A trend trader can say oil is strong and should remain strong AND they know of the seasonally bullish pattern on Energy and oil they may want to stay bullish and go with the trend.

Seasonally Bullish Pattern in Energy and Oil

Over the past 15-17 years there is a pattern in Energy and Oil that sees prices in this sector and its components for the most part trade higher between the time frame of mid-February to mid-July.

Call it, a period of more demand for oil over the summer for travel, boating and jet skiing and fuel prices rising due to the increased demand (use) as more people travel and if the economy opens up and the world opens up maybe that happens even more than it has the past couple of years.

I have authored a special report on this the past handful of years and if you want this years report that was written early February of this year email us to request it at support@tomgentile.com.

App: Toms Option Tools

Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.

Other times I will have other charts may work to amplify my educational points. 

Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.

Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.