Exactly one week ago on Friday April 28 I wrote I was getting nervous about how hot the junior Canadian oil sector was. But I had no idea my sense of foreboding was going to apply to the whole market.
After big declines Tuesday and Wednesday, I kept waiting for the bounce this week. Often times, there is a bounce in the markets back up to their short term moving averages. This is the place where technical support on the charts is now resistance. If the stock indexes like the Dow or the TSX 300 can move up through those moving averages – or fail there and fall down – is what many market technicians watch.
For the junior and intermediate oil market I focus on, the bullish psychology may be now broken. The deeper the energy indexes move into the red – and they have now decisively pierced their long term, 200 day moving averages – the harder it will be for them to bounce back even to the short term resistance.
The Oil and Gas Investments Bulletin portfolio was locking in some profits – and losses – this week. I had a wonderful 12 month run, and now I am excited to get researching some market leading oil stocks that I missed, and have now pulled back.
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If I could tell you about a company that…
* Is employing new technology that gives it a powerful advantage over the rest of the marketplace…
* Is increasing its production and cash flow at a rate decidedly higher than its peers…
* And has the potential to make early investors as much as 112.5% …
You’d want to hear about it, right?
Here’s the thing – I’ve issued alerts on 17 such companies since April 2009…
And to date, those investments are up a whopping 112.5%.
It gets better…
There are dozens of new opportunities about to “pop” over the next 12 months.
I’ve prepared a new report that spells out exactly why this is happening – and how you can stake your claim.
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The only question is – how long will this buying opportunity last? History in the last 18 months says these market pullbacks are sharp but brief, and looking at 3 year chart on the Dow, almost predictable. Whenever the Dow has risen to a level that was support or resistance BEFORE the crash of October 2008, it has met resistance. Each time it has taken a little bit longer to power through it to the upside, but it has done it.
My suspicion is that the really junior stocks will now have a harder time, and debt will once again become an issue, especially for the gas weighted producers. While I still do expect a bounce in the indexes next week – the market tolerance for risk will be reduced going forward, and the stocks of smaller energy companies will have a harder time continuing their outperformance of the market.
On the positive side, that should mean cheaper financing opportunities for myself and other retail investors to participate.
But much of my research will now be focused on more intermediate stage companies, or well financed, oil weighted juniors that have their 3-5 year growth engine already built in. I already saw some of those market leading juniors start rebounding today. So I better get busy. Because there is now lots of opportunity out there.
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