XOM was first a core short that was closed because it was clear a counter trend bounce was coming, but I'm still looking forward to re-establishing XOM as a core short again at higher levels which I think is probable. It has also been a decent call position since the first call on the same day I covered the core short.
The red "C" is for a closed Call position, the white "C" is for a call opened and the red "S" is where the core short was covered and each has their gains above for the position, +5%, +39%, +32% and a current call open now.
I like XOM for a call position, I don't think it has enough profit potential for an equity long, but you could always use ERX (3x long energy ETF) which I mentioned the same day the call was opened, I think that position would be worthwhile.
This daily 3C chart shows why XOM is near the top of the list for core short positrons and why I will re-establish the short equity position at higher prices.
The 2 hour chart shows distribution at the July top and a small divergence now suggesting more upside on the counter trend bounce, although there is no real primary trend yet other than lateral.
The 30 min chart's negative and positive as well as the reversal process in orange, it looks like a call in XOM is well worth the risk even here.
However if there's any chance to get a call opened at lower levels (in red), that would be my preference.
You can see the short term opportunity pretty clearly, when looking at the daily chart you ccan see the long term trending trade opportunity very clearly, so I'm just trying to take what the market is giving here, but in doing that I'm also executing my main strategy, ride XOM up with a call to make some gains, but the most important thing for me is to re-enter the trend position short at higher prices.
I think we get higher prices, but I don't think they hold for long.
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