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Energy Update

By Jack Chan at www.simplyprofits.org
February 2nd, 2021

Signals and set ups

Investors
During a long term buy signal, investors can accumulate positions by cost averaging at cycle bottoms, ideally when prices are at or near the daily 200ema. During a long term sell signal, investors should be hedged or in cash.

Traders
Simply buy and sell upon buy/sell signals on the daily charts, or cost average in at cycle bottoms when prices are at or near the daily 200ema; and cost average out at cycle tops when prices are above the daily 50ema..

Allocations
Will be conservative when volatility is high, and aggressive when volatility is low.

Current signals

Long term - on BUY signal
Short term - on sell signals
A correction is in progress.


OIH - TLBSS.
Long from 103.50, no stop.
10% allocation.
Closed out with a gain of +57%.
We shall now wait for the correction to complete.


XLE - TLBSS
Long from 30.44, no stop.
10% allocation.
Holding as a core position.


XOP - TLBSS.
Long from 44.62, no stop.
10% allocation.
Closed out with a gain of +36%.
We shall now wait for the correction to complete.


XEG.TO - TLBSS
Long from 4.40, no stop.
Allocation 10%.
Holding as a core position.

Summary

Long term (monthly chart) - on BUY signal.
Short term (daily chart) - on sell signals.
Cycle is down and a correction is in progress.
We took nice profits on OIH and XOP, and holding XLE and XEG.to as core positions for the long term.
We will allocate more capital to the sector upon the completion of the correction.

End of update

February 2nd, 2021
Jack Chan
website: www.simplyprofits.org