By Michael Kahn, February 19th, 2015 (access requires subscription)
The chart of heating oil futures shows a clear move above the 50-day average for the first time since July. And as I wrote here earlier this month, John Kosar, director of research at the technical advisory Asbury Research, said that commercial hedgers in the heating oil contract are holding a near-record net long position, which represents an aggressive bet by the smart money that this asset is undervalued.
Also see Barron’s February 4th article, entitled Energy Stocks Showing Signs of Bubbling to Life, for another quote by John Kosar and further information about the Energy Sector.
Since February 4th, heating oil prices have risen by 14% into the February 17th highs. Positively correlated crude oil prices have risen by 12% during the same period.
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