Take a look at IEO...
As you can see, IEO made a lower low in price but the RSI did not confirm the new low as it made a higher low.
What's it mean?
Downward momentum for IEO is losing steam and a reversal to the upside should be coming our way soon. What's more, as long as the Spanish bailout goes through, I think now's a great time to add some undervalued energy names to a portfolio. I added APA last Thursday and Friday and I remain long GPOR, NOG from last month. I'm on the lookout for more trades and you'll see them posted soon!
UPDATE June 11th: Traders used the strong opening as a selling opportunity. Oil dropped 5 points from the pre-market high to the close, a huge down day by anyone's standards. Today's price action was abysmal across the board and I think lower prices for oil and the S&P 500 are now in the cards. I will be a seller of $APA if we get downside continuation tomorrow.
UPDATE June 14th: Choppy action for the broad market this week. However, APA is screaming today after a bullish operations update this morning. I remain long APA from $83.50.
NOG and GPOR are hanging in there today but both stocks are still stuck in a brutal downtrend. My position size in NOG and GPOR is relatively small so I am willing to take some heat on these stocks. Both stocks offer considerable value in the US onshore oil E&P space.
