Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Energy-related Commodities Lead, but Oil Looks Vulnerable

by September 21, 2023
September 21, 2023
Energy-related Commodities Lead, but Oil Looks Vulnerable

Energy-related Commodities Lead, but Oil Looks Vulnerable

It has been a rough ride for most commodities this year and especially over the last 100 trading days (since May). Of the twelve spot prices I track, nine are up and three are down. Precious metals, base metals, lumber and grains are all down. The energy complex is the only gainer since May. Oil is up over 15%. Even though oil is leading, it hit an overbought extreme and looks vulnerable to a pullback.

As an aside, there is an old saying that the cure for high oil prices is high oil prices. In other words, demand will wane as prices climb and supply will eventually exceed demand. The same is perhaps true for inflation. The cure for high inflation is high inflation. Demand will wane as prices climb and consumers cut back on spending. This drop in demand is what will ultimately cure inflation.

The chart below shows USO becoming overbought in July-August and even more overbought in September. . Yes, there is overbought and then there is OVERBOUGHT. RSI exceeded 70 in late July and early August. This is the garden variety overbought reading. It then exceeded 80 in mid September. This creates an exceptionally overbought condition that could lead to a pullback. USO and two energy ETF were covered in Thursday’s Chart Trader report and video

Where might USO find support? USO was up some 37% from the June low to the September high. A 50% retracement of this move would extend to the 70 area. The blue shading marks a prior resistance zone in the low 70s and this is also a target for a pullback. Taken together, I would suggest a zone in the 70-73 area for a pullback.

I covered USO and two energy ETFs in Thursday’s Chart Trader report and video. This report summarized the bearish evidence for stocks and put forth downside targets for SPY and QQQ. Three bearish stock ideas were also presented with downside targets. Click here to learn more and gain immediate access.

The TIP Indicator Edge Plug-in for StockCharts ACP has 11 indicators to enhance your analysis and trading. These include the Trend Composite, Momentum Composite and ATR Trailing Stop. Click here to learn more.

—————————————

0
FacebookTwitterGoogle +Pinterest
previous post
Pro-life groups remind Trump they aren’t a ‘cheap date’ after recent abortion remarks
next post
New Data: Immigrant Population Is 2 Million Below 2017 Census Projections

You may also like

This Is The Only Segment Of The Market...

September 18, 2023

1st Quarter — QE Boosts Commodities and Stocks

March 31, 2023

CHAOS-Insert Any Headline Here-BUY #GOLD

March 18, 2023

MEM TV: Key Areas of Support as Markets...

June 24, 2023

Using Options-Related Weakness To Find Excellent Trades

August 23, 2022

Commodities are the Best Investments

July 26, 2023

The Ord Oracle March 14, 2023

March 15, 2023

Salesforce Falls Out of Favor: Trade the Bear...

May 14, 2024

Cisco Takes the Lead with a Classic Bullish...

July 24, 2023

Introducing the Four Horsemen of MELA; Homebuilders Thrive...

April 23, 2023

This Is The Only Segment Of The Market...

September 18, 2023

1st Quarter — QE Boosts Commodities and Stocks

March 31, 2023

CHAOS-Insert Any Headline Here-BUY #GOLD

March 18, 2023

MEM TV: Key Areas of Support as Markets...

June 24, 2023

Using Options-Related Weakness To Find Excellent Trades

August 23, 2022

Commodities are the Best Investments

July 26, 2023

The Ord Oracle March 14, 2023

March 15, 2023

Salesforce Falls Out of Favor: Trade the Bear...

May 14, 2024

Cisco Takes the Lead with a Classic Bullish...

July 24, 2023

Introducing the Four Horsemen of MELA; Homebuilders Thrive...

April 23, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk confident DOGE will save $1 trillion as government cost cutting continues

      May 30, 2025
    • Who will be Elon’s successor? The top names in line for DOGE chief

      May 30, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • Donald Trump fires National Portrait Gallery director for being ‘strong supporter’ of DEI

      May 30, 2025
    • Biden says he could ‘beat the hell out of’ authors of new book arguing his cognitive decline

      May 30, 2025

    Categories

    • Business (8,104)
    • Investing (2,000)
    • Politics (15,444)
    • Stocks (3,117)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved