Price of Fuel
We are in the month of November. As I told you in early October, I do not buy
investments in the month of October. In fact, I am basically a noninvestment
grade corporate bond investor. But I do
buy some stock and I buy stock for my friends with their money. I sold their stock in early October and bought
in late October in anticipation for the yearend
rally.
On October 30th, I started buying Exxon Mobil Corporation (Stock
Symbol: XON)for my friends using a "Buy and Hold" Strategy. The high this year has been $104.76 and the
low has been $86.91. The lowest that I received for my friends has been $97.11.
The price as of the time I am writing this article was $96.50.
Gas Pumps
Exxon Mobil Corp.'s stock recorded
a trading volume of 13.23 million shares, above its three months average volume
of 11.80 million shares. The company's shares oscillated between $95.72 and $97.16 during
a recent session. Over the last three trading sessions and over the past one
month, Exxon Mobil Corp.'s shares have advanced 2.19% and 2.09%, respectively.
However, the stock has fallen by
4.56% since the start of this year. The stock is trading above its 50-day
moving average of $94.99, while the 50-day moving
average is below Exxon Mobil Corp.'s 200-day moving average of $97.89. Additionally, the stock traded at a PE ratio of
12.16 and has a Relative Strength Index (RSI) of 59.09.
In my opinion, this means that
XON is at or near its bottom prices. This stock is ideal for buying a little
each pay and selling at a higher price. This is called a "buy and hold"
strategy. The best account to use for people with very little means to invest
is the Sharebuilder's Plan.
People have a mono-view of
things. Looking at the oil market is no different. People think that because
gasoline prices are falling, that this is a "win-win" for the public.
Such people do not know how the economy works. For example, low price oil can
put fracking oil producers out of business and furlough workers. Fracking Oil
Supply Companies will suffer and people will be furloughed.
To watch this video, click on the picture. If you do not support this type of video, click on the link below.
Plunging Oil Prices Have Unpredictable Impact on Politics, Economics
Exxon Corporation can produce profitable oil even if they
shut down fracking operations and will have plenty of oil ready for a rising
oil and gas market, meaning the price of XON will rise.
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