ERX will go UP
$40.00 on 7/06/12
$35.25 (-0.84% from time of market call)
A month ago ERX was trading at $42, three months ago ERX was trading at $58. I believe this stock started getting support at $40 but due to all the negative news going on it was driven down to a very attractive purchase price. With all the buyers ready to pounce on the cheap prices any good news or lack of bad news would launch this stock like you see today. We saw a bounce back last month when the stock jumped from $35 to just over $40 from May 23rd to May 29th. So the big question is this stock on a rebound due to the price of the stock (high volume) or is it market driven. Even though this stock is an energy ETF it is heavily affected by the market. So watch Europe's status. If they do not make any progress in the near future expect a sell off and the stock to drop fast. If this is just a rebound I see it peaking at $40-$45 in the this week and possibly caring on into next week. If it is market driven I could see it getting back to $50-$55. Chances of Europe finding solutions in the near future are pretty slim from looking at the past.