Wednesday, January 25, 2017

OVX Oil Volatility and WTIC West Texas Intermediate Crude Oil Daily Charts

The OVX oil volatility is a useful gauge to determine oil inflection points. The green circles are very high volatility which is panic and fear in the oil pits which creates a bottom in oil prices. The red circles are complacency and fearlessness, everyone is partying like its 1999 fully expecting oil to continue higher; of course the opposite occurs; oil sells off. What do you think will happen?

Oil is a better play on the short side going forward and a long oil play would not be attractive until the OVX prints above 42 indicating that there is blood in the pits; that is when you want to buy oil. Keystone has no position in oil currently. Any move higher in oil from here forward likely provides a short entry opportunity. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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