PSX
Phillips 66 Is Out of GasPSX has a nice flag off the March lows, which briefly got it above its long-term trend line from 2015 before immediately giving it back up again. That flag has also now broken into a bearish, downward-sloping channel.
And finally, it trades well below both its 50- and 200-day moving averages. This is a short.
Crak'n Up - Refiners Are Not At A Level Worth Buying Yet"Refinery stocks are not ripe just yet, especially with crack spreads as weak as they are. We're already seeing three of the top four holdings in CRAK begin to roll over, including Marathon, Velaro, and Holly Frontier. Phillips 66 is the outlier.
We continue to wait for CRAK to reach to range bottom with a confluence of crack spreads. If refiners continue to breakdown, we'll revisit prior to the summer gas demand season."
CRAK intermediate TACVOL
CRAK 31.88/26.16
MPC 71.04/56.04
PSX 104.02/82.85
HFC 67.49/45.38
VLO 92.70/69.64
PSX Inverse Head and ShouldersPSX has completed an inverse Head and Shoulders pattern but failed to breakout above the neckline. It's possible that this could be due to the imminent earnings report which will be released BMO on Friday. In my opinion investors - traders are waiting for this release before entering a long position. PSX is once again approaching the neckline area and a nice beat on Friday could be the catalyst that is needed to push the price above the neckline towards $100.
PSX has beaten the earnings estimates the last 5 quarters but looking at the chart, PSX typically does not seem to make huge moves one way or the other on earnings results. That being the case I still believe a nice beat on Friday could propel PSX toward the $100 area. I am currently long PSX but I am also waiting to see the earnings results before adding or reducing my position.
MPC: Long term uptrend signal$MPC has an excellent long term uptrend signal at play here. If not long you should average in over 3 days at least, risking a drop to 43.42, or 3 daily average ranges down. Targets are 89.66 and potentially up to 143.09 in the long run, to be hit by or before Q4 2019.
My mentor, Tim West has been adamant about $MPC's strengt, and so far he's been right. This stock has shown relative strength, selling off less than its peers and rallying more and with lower volatility, indicating that there are some big players involved, buying in the background.
Fundamentals are great for this company, and valuation is compelling, so it's a really low risk trade.
I'd reccomend holding this and $PBF for exposure in this sector.
Good luck,
Ivan Labrie.
PBF: Excellent 'Time at Mode' signalsPBF is tracing a downtrend, sadly, since it didn't bottom at the recent low...I had to take a loss on my recent entries, and I'll wait for it to hit the lower targets to reenter. My idea is perhaps to short put options at the target, and either get assigned, or get profit from the premium on expiry. Either way, it's a great trade if we take the long side.
Fundamentals are good, and this is a good addition to any portfolio, we just need to time a good entry here and let it ride. The yield is worth it.
Good luck,
Ivan Labrie.
PBF: In an uptrend, buy dipsI'm looking to reenter PBF at support near the 27.55 mark. I've highlighted my recent trades in the chart, showing my exits and reentries. I'm adept at working like this instead of holding during corrections. I anticipate the turns based on price action around key levels, and the application of Tim West's 'self contrarian' signals that we use to time exits in good profits, or trail stops and add to positions.
What we do is constantly asessing our own emotions regarding our positions, specially the winning ones, since this gives us a great edge in finding good profit taking zones, and determining when to reenter positions.
I'd reccomend buying a position gradually near the 27.55 mark, starting as soon as Monday would be ok, but ideally the correction will last until December 14th which is what I estimate.
I'd reccomend opening a 7% size position if we hit 27.55, and you can look to add once in profit confirming the rally. Entering over a week would be better.
Good luck,
Ivan Labrie.
PSX: Warren Buffet's callThis stock is acting great (and similarly to $PBF and $MPC, it's a great long term play, with immediate entry parameters).
If not long the stock you can look to get long on either, dips to support, price moving above the previous daily close or a new daily high. As long as it stays above the light blue box, it's highly likely accelerating to the upside, and heading to 84.53 in the short term.
Good luck!
Ivan Labrie.
Short MPCIf oil takes a significant dip overnight, I will be short MPC. I don't think there is any fundamental to support this stock to the upside anyways, so I am shorting calls. Plus I am not much of an options buyer unless to trying to hit a home run.
The blue line represents options expiration day. These are 4h bars.
Important to note that NOT all refiners are trading in tandem. MPC and TSO are down today, while HFC, PSX, and VLO are all up.
Note TSO and HFC report their second quarter 2016 results 8/3.
PSX strong long setup on H1NYSE:PSX
A powerful bounce from the trend line with low volume test means no selling in the stock.
The push through of the swing high is a very high probability.
I recommend to exit 80% of trade size at the 1st price target as shown on the chart 88.24$
The remaining size of the trade will ride the trend till i give exit signal.