Energy-Trader

Reader's Comment: Oil Stocks vs. Oil Trading Strategy

The above analysis is far too simplistic to be effective.

For example, just look at how the major integrated oil producers like XOM, CVX, and COP bottomed in October with the S&P and then proceeded to go on a huge rally (+30%) while crude oil futures on the NYMEX were still plummeting in the 4th quarter, from $72 down to $35.

That lack of correlation will kill a "system" such as the one highlighted above.