Oil Stock Rotation 042808

Oil stocks moved down again today after gapping lower at the open. OIH doesn’t have any real support until around 188. The 20 day moving average should stall the fall here. It feels like we’re getting rotation out of a sector that’s been leading for three years now. Time will tell.

I’m trading DUG to catch the decline in oil stocks. Volume on the daily chart of DUG has increased on the up days which is bullish. The higher low pivot on the daily and buy signal today had me looking for an entry on a lower time frame.

I tried the buy signal on the 5-minute intraday chart, but was stopped out. I’ll be limiting the amount of charts I’m focusing on in the future, because I failed to buy the 15-minute chart’s buy signal. It worked.

Tomorrow the fed decision should stir up volatility.