Energy stocks were weak again as WTI oil made a new 5 year low. We were looking for a short term intraday bounce in the $XOP index and wanted to ride some oversold midstream energy stocks for a bounce. We choose $NGL ( NGL Energy Partners) because it had a technically oversold daily chart and was -14% for the day -- a lot more than its peers.
We scaled into the position with small size being cautious that it may go down further and because the stock is thinly traded. The $XOP index started to bounce as oil went positive for the day. $NGL finally started showing some life on this oil rip and we sold into strength on the way up. Easy trade but required some patience at first.
