In late 2014, I started to buy oil stocks which had fallen significantly. In 2015, I continued to buy as oil stocks fell further. In 2016, I continued to buy as some oil stocks reached new lows. Then the pain became to great and I stopped buying.
With the recent speculated OPEC (but not yet delivered) cut backs in production, oil stocks have been on a tear lately, advancing as much as 20% in a day. During this time, I have been selling parts of positions into the rally. I was skeptical that the stock rally was sustainable at such high rates of gain.
However, the gains have been continuing, I have revised my outlook. It seems this rally may be more like the 1.5 year rally in 2013 to mid 2014, where many oil stocks rose to new highs. If history repeats, oil stocks may continue to rally throught 2017, which would be great.
So for now, I'm going to let our oil stocks ride and maximize our profits. For some of the big gainers (e.g. about 100%), I may lock in some gains and take some profits.
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This is not financial advice. Please consult a professional advisor.
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November Income – $5214.58
1 week ago
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