Bullboard - Stock Discussion Forum Petrus Resources Ltd T.PRQ

Alternate Symbol(s): PTRUF

Petrus Resources Ltd. is a Canadian oil and gas company focused on property exploitation, strategic acquisitions and risk-managed exploration in Alberta. The Company has an inventory of low-risk oil and natural gas development assets in its Ferrier, North Ferrier and Thorsby operating areas. Its core area, Ferrier, is a resource play. The Ferrier is a liquid rich Cardium gas play. North Ferrier... see more

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Petrus Resources Ltd > MArket Bottom

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Post by llerrad5 on Jun 17, 2022 4:10pm

MArket Bottom

This guy has been very good on his market calls. We shall see. I'd bet with h im.

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.