Surge Energy Inc (Alberta) T.SGY

Alternate Symbol(s): ZPTAF | T.SGY.DB.B

Energy Oil & Gas E&P

Surge Energy Inc. is a Canada-based oil focused exploration and production (E&P) company. The Company's business consists of the exploration, development and production of oil and gas from properties in Western Canada. It holds focused and operated light and medium gravity crude oil properties in Alberta, Saskatchewan and Manitoba, characterized by large oil in place crude oil reservoirs with low recovery factors. It offers exposure to two of the five conventional oil growth plays in Canada: the Sparky and SE Saskatchewan. It holds a dominant land position and is drilling a mix of horizontal multi-frac and horizontal multi-lateral wells in the Sparky area. Sparky is a large, well established oil producing fairway in Western Canada. SE Saskatchewan is a focused operated asset base with light oil operating netbacks. SE Saskatchewan operates low-cost wells with short payouts and offers potential for continued area consolidation.

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Surge Energy Inc (Alberta)

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Post by llerrad5on Jun 17, 2022 4:10pm

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Post# 34765644

MArket Bottom

EarningsBeats.com Digest for June 17, 2022

Is There A Bottom In Sight?

I believe it's arrived. If you're an EarningsBeats.com member, you know all the warnings that I passed along in late 2021 and early 2022. In our MarketVision 2022 event on Saturday, January 8th, I showed on a chart how I believed 2022 would unfold. I suggested the first six months would be very bearish with a cyclical bear market gripping Wall Street. I pointed to a potential low in the 3500-3800 area. Yesterday's low was 3639, right in the middle of that range. But that's not why I'm calling the bottom. I also pointed out at the beginning of the year that sentiment needed a "reset". The 253-day moving average of the equity only put call ratio ($CPCE) reached a level where the bull market was no longer sustainable. There were simply too many longs. That 253-day moving average of the CPCE has been rising all year long as everyone grows ridiculously bearish. For this article, however, I want you to simply look at this 5-day moving average of the equity only put call ratio. Focus on two things. First, the ridiculously low level of this ratio in 2020 and 2021. Everyone was on the call bandwagon, believing prices could not go lower. Second, check out what happens whenever this 5-day moving average reaches .80 (green horizontal line):

I've drawn green-dotted vertical lines at those .80 levels. Look at what happens to the S&P 500 after sentiment reaches this extreme bearish level. Ask yourself, "what is the risk when the 5-day moving average reaches .80? Is it riskier to be long or to be short?" I'm fairly certain that if you objectively look at this chart, you'll see that when this 5-day moving average of the CPCE reaches .80 or higher, you want to be long. But keep in mind this is simply a short-term directional indicator. It doesn't always mark THE ultimate bottom. In my opinion, rotation and intermarket relationships helps us to mark that. As I've been pointing out to EB.com members this week, the rotation has turned much, much more bullish as well.

It's time to go long.