XTO Short. Natural Gas Looks Good But The Equities Look Ripe For A Selloff

While I do like natural gas as a long I think the equities could be overbought.  Take a look at XTO.  This thing is bumping up on the upper band of a downtrending channel and has already failed to rally while the market was up today.  Furthermore, the stock is getting up into the range of the previous bottom where all the would be bottom pickers are waiting to unload as the stock comes back up into the range where they bought it.  I call that the “dear god please let me out range”.  In addition to that the Force Index is reading slightly overbought and is peaking in a range which in the past has proved to be a short term top.  I think you can short this thing right here with a stop at yesterday’s high or slightly above it.

XTO short

XTO short

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This entry was posted on Friday, November 28th, 2008 at 11:55 pm and is filed under Focus Trades. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “XTO Short. Natural Gas Looks Good But The Equities Look Ripe For A Selloff”

  1. Josh Maxwell Says:
    November 29th, 2008 at 12:15 am

    I’ve been reading along for a while now. I just wanted to drop you a comment to say keep up the good work.

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