My plan for buying stocks and ETFs in the oil sector has been to wait for a pullback. I finally got that pullback yesterday. I’m aware there are hurricanes that can affect prices, but I only take my clues off the chart. Logical thinking of “well if a hurricane hits, then oil prices will go up…” does not always work.

I waited for the 60-minute chart to put in a higher high candlestick in DIG. That told me the bulls were taking a stand. At the same time, DIG was building a small base on the 5-minute chart. That gave a defined stop below the base when the ETF broke the base. I set a stop on some below the base, below the day’s low, and below the pivot low on the daily. Because I was focused on one play, I added over the 50ma on the 5-minute. Intraday profits were taken, and I held the rest, with the 50 dma target in mind.

Oil stocks gapped higher yesterday, and are gapping higher once again this morning, as DIG is currently bidding 90.5 premarket. I had planned, and thought… that oil stocks would fall first. I was wrong, and that’s ok. I’d rather have a buying plan, and a missed opportunity, than lose money.

We still look on target to reach the 50dma’s on DIG and OIH. I’ll look for an intraday buy signal.

Otherwise it’s still choppy, light trading, and intraday trades for me until the market moves out of this range.

One stock to keep an eye on is BIDU. The weekly chart is winding tighter, and once a direction is established, the breakout could be good for 50 points.