Tag Archive for Amex Oil & Gas Index

Sterling Market Commentary for Monday October 15th, 2012

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A Few Thoughts on Monday’s Market: In looking at the charts from Friday’s market I noticed a couple of items of interest. The 1st being that the majority of the various sector indices I track appear to continue to be moving lower. The Amex Gold/Silver Index ‘XAU’, the S&P Chemicals Index ‘CEX’ and the Amex Oil & Gas Index ‘XOI’ (which touched its 200 day moving average on Friday) all appear to be in the process of breaking support and heading lower. The banking indices, the S&P Banking Index ‘BIX’ and the KBW Banking Index ‘BKW’ both sold off sharply on Friday. The ‘BIX’ broke below an upward sloping trendline that had provided support and looks to be starting a new downturn. While the ‘BKW’ is right on the its upward sloping trendline. Another down day in the banking stocks and we could see some real the start of an intermediate downtrend in these stocks. As far as the overall market goes, I am expecting a lackluster, with a slight downward bias, pair of trading days prior to Tuesday night’s Presidential debate.

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Sterling Weekly for February 27th, 2012 – A Look at the Price of Oil

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The price of oil reached a short term high of $113.92 per barrel on April 29th, 2011, and then declined to $76.78 on October 4th, 2011. What is very important about this chart is that if the price of oil closed above $113.92 per barrel, then it will have completed a “cup pattern” with a measured move to $151.06 per barrel. I consider cup patterns to be very highly reliable, and very predictable. On Friday the price of wholesale gasoline closed at $3.15 per gallon. This is a ratio of just under 35 to 1 between the price of oil and gasoline. Applying that ratio to $150 per barrel oil and you get an estimated wholesale gasoline of approximately $4.28 per gallon. That would most likely put the price at the pump close to….

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