I expect oil to pullback some more and hopefully improve the crack spread.
The charts of the refiners look very promising, however you always have to consider the possibility that these stocks have not bottomed. But given that crude has topped, the outlook of the refiners should not deteriorate further unless gasoline demand drops down huge.
FTO
Breaking to the upside again, I wouldn't chase it here. But it is now above the 10, 20 and 50 DMA which are all increasing. Very bullish.
TSO
Breaking to the upside and showing a lot of strength. A little overextended here since it has gone from 15 to 20 in 8 days. It is above the 10, 20 and 50 DMA which are all increasing. It is also right at the 100 DMA, which may provide resistance. A pullback or a breakout followed by a pullback should be bought. Very bullish.
WNR
It is now above the 10, 20, 50, 100 DMA and they are all increasing. This gives me a lot of confidence that this has bottomed. Bullish but only intraday since I expect pullbacks.
SUN
Stabilizing, the least extended of the refiners that I follow.
HOC
Another example of strength, not my favorit, but it can make moves.
