Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Oil Bear Market About To End?

|Includes: DBO, DNO, DTO, DWTI, OIL, OLEM, OLO, SCO, SZO, TWTI, UCO, USL, The United States Oil ETF, LP (USO), UWTI

Crude Oil Rig Count

The Oil Bear Market is About to End by The Gold and Oil Guy

Crude oil and energy stocks are tricky to navigate in a situation like this where the equities market is nearing a bull market top.

It is critical to remember that when the US stock market turns down and starts a bear market virtually all stocks and commodities will fall in value including oil and energy stocks. Investors need to understand that even though the price of crude oil is nearing a bottom it could and will likely stay low for a considerable amount of time "IF" the stock market turns down.

Over the last 100 years we have seen nearly 30 bear markets. The average length of a bear market is 18 months and has an average decline of 30%.

I do feel currency problems and a war breakout will be bullish for both oil and gold. So if we get a bear market in equities, and a war oil and oil should rally while stocks in general fall.

But if we do not have those sever crisis' then if gold and oil break below their critical support level which is the red line on the charts and a bear market in stocks start you do not want to be long stocks or commodities.

Price Chart of Oil

The chart below shows the line in the sand for the price of crude oil. If this level is broken with a monthly bar close below $43 per/barrel I think $30-$33 will be the next stop and the low for the oil market. It seems everyone is bullish on precious metals and have been buying like crazy.

The points I made about gold which I talked about in PART II should be reread because if the support levels are broken oil will fall 40%, and gold another 35% from their current prices.

Crude Oil Price Chart

Below are some ETFs that takes advantage of rising oil prices. While there are other funds that cover oil stocks I feel they may not perform well during the equities bear market. Investing in physical oil is the best play at this stage of the game but when the equities bear market looks to be nearing an end, energy stocks will be the best place to invest.

ETF Expenses

The following table includes expense data and other descriptive information for all Crude Oil ETF's listed on US exchanges that are currently tracked by ETF Database. In addition to expense ratio and issuer informaiton, this table displays platforms that offer commission-free trading for certain ETF's

Crude Oil ETFs

Conclusion

In short, I feel crude oil will has or will find a bottom within the next couple months. Long term the value is great, but we must be aware that if equities start a bear market it will be best close all equity positions and wait for the bear market to subside. When the time is right investing in crude oil and energy stocks which pay high dividends will generate life changing gains and an income stream. Patience is the key.

AvaTrade

Online Forex Trading Platform and Award Winning Forex Broker AvaTrade
Trade Currencies, Commodities, Indices, Equities, and Bitcoin too now from one screen with AvaTrade and MetaTrader the industry's most powerful and flexible trading platform.

Click the Links Below to Review Energy Markets Advisory Services and Alternative Energy Products

NetPicks Live Signal Service

Buy Sell Signal Trade Plans for Crude Oil Futures
We hand-pick and call two very successful Forex markets (EURUSD and EURJPY) and two high-performing Futures markets (Crude Oil and Russell eMini) during the week, Monday through Friday. Specifically, here's the schedule: At 8:30 EST, we begin trading two Forex markets; EURUSD and EURJPY. At 8:50 EST, we begin trading Crude Oil Futures. At 9:30 EST, we begin trading our Russell eMini trade plan

Elliott Wave Oil Forecasts

Elliott Wave Energy Futures Forecasts

Solar Energy Power Products

Alternative Energy News Products Companies

Live Trading Seminars

Stock Option Forex Futures Training Seminars Webinars Workshops
Click Here For The Complete 2015 Schedule

Professional investors traders teaching successful low-risk high-reward
trade strategies. Power profit secrets for stocks, options, forex, futures
investing trading success. Or avail of Home Study Courses and or
Trading Softwares available to improve your investment returns.