With Israel at war, oil prices are starting to gush higher. And unless the situation can cool off – which doesn’t seem likely at this point – there’s fear the situation could get far worse than it is now. For one, if Iran was also involved in the attack, they could face potential retaliation, which could inflame concerns over the Strait of Hormuz.
After all, as noted by MarketWatch, “Iran remains a very big wild card and we will be watching how strongly [Israeli] Prime Minister Netanyahu blames Tehran for facilitating these attacks by providing Hamas with weapons and logistical support,” said Helima Croft, head of global commodity strategy at RBC Capital Markets.
Two, there are growing calls for tightening U.S. sanctions against Iran with this latest situation. “Most immediately, Biden is facing calls from both Democratic and Republican lawmakers to tighten enforcement of sanctions restricting oil exports by Iran, Hamas’ main sponsor and supporter,” as noted by E&E Daily.
SPDR Energy Select Sector ETF (XLE)
With an expense ratio of 0.10%, the XLE ETF provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Not only does an ETF allow for diversification, you can buy it for less.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
With an expense ratio of 0.35%, the ETF provides exposure to the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR. Some of its top holdings include Callon Petroleum, SM Energy Company, Devon Energy Corporation, EOG Resources, and ConocoPhillips.
Stochastics, Relative Strength Index (RSI), Moving Average Oscillators… virtually every technical trader attempts to make use of at least one of these tools, but the statistics show that very few of them meet with success. Does that really mean they are worthless tools? No, not if they are employed properly.
Let’s get the basics out of the way. My preference is to use a 5-period RSI, a 9-period Slow Stochastic, and a Moving Average Oscillator made up of the difference between a 5-period simple moving average of (H+L+C)/3 and a 22-period simple moving average of (H+L+C)/3.
The complete formulas for RSI and Stochastics are somewhat intricate. Both are normally part of any commercially available graphics package, and it is certainly much easier to just let the software calculate them for you.
When it comes to this upcoming week, the first thing I want to tell you about is that some of these gigantic returns of last week MAY repeat themselves. Let me dissect the upcoming week for you to show you where the potential may be found.
Before I get into the Economic Calendar shown above, I want to let you know that Earnings Season is set to start this upcoming week. I’m going to show you the stocks releasing their Earnings which I normally would have the most interest in. But I’m not interested in. We will tell why you shortly.
Tuesday, October 10 Before the Open: PepsiCo (PEP)
Thursday, October 12 Before the Open: Delta Airlines (DAL)
Friday, October 13 Before the Open: Citigroup (C), JPMorgan Chase (JPM), Wells Fargo (WFC)
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