We don’t always like to go short, but when we do we love to short oil companies.
Statistically, shorting is not the most effective way to profit from trading, unless of course you have a good trading algorithm like ours which picked up a strong pattern that has been profitable since March. This morning it generated a Sell signal at the open on Chevron Corp. (NYSE:CVX). Since CVX is the 4th largest weighting on the DJIA, which has a strong negative correlation with Gold, this signal dovetails nicely with our long Gold call.
And why do we like shorting Oil companies? We are no fan of any company that’s in the business of stripping natural resources to deliver to an open market. Maybe we’ll run a scan on mining and forestry companies while we’re at it.