Direxion Daily S&P Oil & Gas Exploration & Production Bull 2X (GUSH)

[Sgreg]

Xop is way out of correlation with the price of oil. For months I have believed that it all gets turned around starting in late August or September. Fact is historically XOP would be in the mid 30s with oil in mid 50s. I believe what happened in the Gold complex will happen in the oil complex. They drove the gold stocks insainly low in the early part of the year. Made them look undesirable and worthless. Made them look like a lost cause. Then boom a few months ago they started a huge run. With Xop already way out of correlation with the price of oil it should not take much of anything to get these oil stocks to run. Things are way out of balance but that always corrects itself. Also they keep talking about a recession looming. Never has a recession ever started without inflation preceding it. The next recession will be after there has been inflation. Without inflation consumers will spend and as long as they do no recession comes. The price of oil is a huge contributor to that. A spike in oil always precedes a recession. When oil spikes it puts major strain on consumers in many different aspects. For instance oil spikes in 2006-2007 to over $120 a barrel. Then the recession started in 2008. If there is going to be a recession then oil will spike first and if there is not going to be a recession the still the Xop being so far out of correlation with oil will have to correct. Either way I believe GUSH is setup really good. Just like gold stocks were earlier in the year. Only negative to waiting is the decay and it is roughly 3% a month but I think we won't be caring about that too much 9nce GUSH is ripping higher. There are 3 gap downs in XOP to watch. At around 23 then around 25 and finally a huge one at 28.50 or so. These gap downs will eventually fill and if you do the calculations you will see what kind of run GUSH is setup for. Again the only thing that will hurt that is the 3% monthly decay but I believe the fire works should start within a month or so. Also for my friend private messaging me I can't private message back but I believe I have answered your last message within this post.