Oil, energy, stocks and when we’ll buy next

Oil got crushed again today and the entire energy sector is in fear mode now. It’s best to buy, not to sell into a sector that’s in fear mode, at least most of the time. The question, as it often is, is one of timing. Is it too early to step in and start scaling into energy stocks? Can oil fall to $50 or $40 or lower? Sure. Would most energy stocks be down even more if that happened? Yes. My experience and my gut tell me that it’s still way too early to start looking for a bottom in oil and energy stocks and that it might be wiser to let the fear feed upon itself for a while. Solar, as it has since I turned from long-time bear to long-term bull on the alternative energy sector and started scaling into First Solar a few years ago. I’m steady as she goes on that position for now, but I am doing some homework and looking at some potential trades/investments in other energy stocks that have been decimated in this oil downturn.

Some of the stocks on my list that I’m doing more homework on looking for a buying opportunity include:

EMES, CHK, HES, VSLR, LINE and MRO. Just in case you want to get started doing some homework on them yourselves.

Stocks have sold off hard this afternoon too, but they’re still near their all-time highs and we’ve already done a bunch of cash raising of late. I think it’s too early to try to scale in on new trades in existing stocks, but I do have a couple I’m looking to buy and might do so this week so stay tuned.