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QAS Alert - Crude Oil & Energy - Early Bottoming
By: Ken Tower | 12 Feb 2015


 
Our Intermediate-term outlook for Crude Oil and the Global Energy Sector has improved to Stabilizing.
•This is the first meaningful improvement since the decline began in July 2014. 
•It appears that an initial low is in place and the profile is now similar to that of January 2009. 
•We expect several months of volatile action around these lows before a more sustainable move to the upside is possible.  
 
Brent Crude Oil:
•The profile is similar to that of January 2009 when oil began to bottom.
•This is a fragile improvement.  It is very possible for oil to test its January lows.   Expected range 64 – 45 (now 57.8).
 
Energy Sector:
•The MSCI Global, S&P 500, and European Energy Sectors all have similar Weekly profiles and have improved to Stabilizing.    
•The profiles are similar to December 2008 when the sectors began to bottom. 
•This is a fragile improvement.  It is very possible for the sectors to test their January lows (as they did in March 2009).   Expected range for MSCI World Energy Sector is 250 – 210 (now 237).
•Stocks within the energy sector with positive rating profiles are now attractive to own.   
 

Please contact us for further information.

Best Wishes,

Kenneth Tower, CMT
CEO & Chief Investment Strategist
Quantitative Analysis Service, Inc.
Tel: 201-432-7900
Fax: 201-432-0037
Email: qas@qas-service.com
Web: www.qas-service.com

 

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QAS Alert - Crude Oil & Energy - Early Bottoming
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