** oilers - blow off tops **

  1. 24,765 Posts.
    I've just had a look at a few charts from 1979, 1980, 1981.

    WPL rose strongly in 1979 from 50 cents to $2.40 early in 1980, corrected quickly to $1.60 and hit $3.40 by the end of 1980.

    STO rose from 50 cents in 1979 to $2.20 early in 1980, had a sharp correction to $1.40 and by the end of 1980 were $3.80 on the wat to $6.00 early in 1981.

    So if you believe oil prices will remain firm throughout this year then that will influence how you play any oilers rising very sharply early this year.

    You might consider selling and buying back much cheaper for an anticipated higher price by the end of this year or maybe even holding on and toughing out any correction in anticipation of much higher prices later in the year and also avoiding any possible tax consequences by selling in the first few months of this year.
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