Not to sound like a vulture circling over a herd of cattle that die, but there is much to do in the stock of carnage being caused by the accident of world oil. We are now officially mark 50% of the decline in oil prices; this means oil is now priced exactly in only half or less than half of its value from its peak value. This is a golden opportunity to see the price of the shares of some of the greatest players in the extraction of oil or oil-related industries.
How to know if a stock has a long way to crash
Currently we are in a bear market of oil reserves. Bear mode, you make your money by borrowing the shares at a high price, selling at a high price, and buying again to cover their position when the stock price has crashed to its low target price. Short selling is definitely one of the best ways to make money in a down market and you should definitely look into the oil reserves of short selling. The problem is how to choose the oil companies short. I have a very simple strategy: look at their current prices and see how much oil was priced at the last time the stock hit its current price.
For example, Company A is trading at $ 80 per share now. Look at the date of historical share for the company A and find the last time a trading at $ 80 in the past. Now, look at historical data for oil and see how much oil was priced at the time. If the price of oil is priced at $ 100 or more per barrel last time A company was trading at $ 80 per share, which means that the company is still overvalued. You must cut this population since oil is now below $ 50 range Clear?
