Sentiment Vs. Price Action
May 27th, 2008 by Buck Woodford
My just-posted bullish posture (sentiment-wise) in Crude Oil is balanced by a textbook sell signal on the Daily chart.
The Oil ETF (USO) reflects futures markets, which both have just experienced an upside move outside the 4-month uptrending channel. In short, it looks euphoric and ripe for a pullback if not all-out top. FWIW this is one of Bill O’Neill’s (of IBD fame) classic sell signals.
So, it’s price action versus “bubble-babble” sentiment. Winner will only be known in hindsight, but should be very interesting until then..
Long ESV, no other energy stocks at the moment
