9 Energy Sell Ideas From A Wall Street CMT

In addition, he points out that WTI’s seasonal bottom in late January/early February tends to provide a larger and more reliable bounce.

Damage has been done
Despite the possibility of a mid-December bounce, Krinsky sees very little cause for optimism in the charts of certain oil stocks. “While there is the potential for a bounce in crude, the bottom line is the trend for many energy stocks is so damaged that it will take many months if not years to repair,” he explained.

In the meantime, Krinsky recommends trimming the fat. “For now, we suggest selling the weaker names that have shown little ability to rally over the last few months.”

Names to sell
While nearly the entire oil industry remains under pressure from low oil prices, Krinsky sees particular weakness in the charts of a few highlighted stocks. MKM urges traders to sell the following nine names in the near-term:

Antero Resources Corp AR
National –Oilwell Varco, Inc. NOV
Oasis Petroleum Inc. OAS
Range Resources Corp. RRC
Seadrill Ltd SDRL
SM Energy Co SM
Sanchez Energy Corp SN
Southwestern Energy Company SWN
Whiting Petroleum Corp WLL

Disclosure: the author owns shares of National Oilwell Varco and Whiting Petroleum.