TheOxenGroup (< 20)

Time to Enter Oil Short Market

June 15, 2009 – Comments (1) | RELATED TICKERS: ERY , DUG , USO

The Oxen Group, for Monday, is looking at what
may be a bearish day. The lack of economic data,
fears of inflation rates, a lack of stable economic
data, and a lack of major news and economic data
tomorrow may hurt the ability for prices to move
up. Further, this should hurt the ability for oil to
move up. Oil prices were falling in Asia on Monday,
and Asian commodity expert Ken Hasegawa said this
price drive should be ending and moving back to $65
per barrel. The price drive has not been on
fundamentals and profit taking should occur very
soon. The Oxen Group agrees that profit taking will
happen this week, and in a bearish market, that will
occur much more likely. Gas prices jumped
seventeen in the last two weeks, which is anther sign
that a pullback is in the works, as the rise is not at
all based in fundamentals. With this said, Direxion
Daily Energy Bear ETF (ERY). This ETF moves at a
high volatility, meaning that oil's move backwards
will be even more beneficial to you. If fundamentals
are not enough for you, technically, a pullback is
necessary. Oil is overvalued, overbought, and
moved too high, too fast. ERY is extremely
undervalued on Relative Strength Index, has moved
way too low on fast stochastics, and near its lower
bollinger band. These technicals show a sign that
the prices should moving back up. Oil prices should
take profits from the gains last week. Get into ERY
tomorrow and rise the decline in oil prices.

Entry: Recommend buying  within first 15-30
minutes.

Exit: We recommend exiting after a 2-5% increase.

Upper Resistance: 19.25