Justin, thanks for your time and very useful posts, like to ask you regarding high volume you mentioned, Futures contracts expire every month or three months, how volume is important in this case? how volume is early sign for long term holding? and how we can hold position long term when contracts getting expires very short term, OIL etn / etfs seems having lot of tracking error. please advise
I’m not a fan of the oil ETN/ETFs due to how most of them are structured and their inability to track the commodity over a long period of time. Volume is important for a market transitioning from Stage 1 to Stage 2 because when a market moves into an uptrend from a sideways base it takes more buying pressure than normal to push prices higher. I wouldn’t worry about contracts expiring, but look at overall volume coming into stocks and ETFs in the energy sector to see if money is flowing into the sector as a whole.
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