How do you feel about a little buy-the-dip action in the crude oil space? Given that there's juicy options premiums to sell into here, it is certainly worth a discussion.
It has been quite a one-way ride lower for crude since early October, but the All Star Charts team may have noticed something that might make it worthwhile to dip our toes into these slightly contaminated waters:
In addition to improvements in sentiment, we’re seeing bullish momentum divergences being formed and/or confirmed across the board in the Energy Commodities themselves, as well as their corresponding US Equity Sectors.
This not only signals some potential exhaustion on the side of sellers, but more importantly, it allows us to define our risk on the long side which we haven’t been able to do since prices broke back below their July highs.
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