Dear Fellow Investors,
In the following video, I provide a recap of our portfolio and discuss the biggest bull market in the history of the energy sector.
This week, JPMorgan Chase predicted again that oil prices could hit $200 in the coming years.
Given the ongoing supply chain crunch, rising geopolitical tensions, OPEC’s reluctance to ramp up production, and many other factors, we certainly could see a swell of oil prices.
Even if we get to $100 or $120 per barrel from the current levels of $80, there’s a lot of money to be made.
If this year’s energy markets are any indication, oil prices could be the next shoe to drop.
We’ve seen natural gas, liquefied natural gas, uranium, and coal prices all push to record territory. So, it makes sense that oil prices follow suit.
The result would be a pretty tricky economy for everyone.
Remember that oil is in everything. It’s not just the commodity behind the gasoline in your tank.
Oil is in plastics, carpet, even your clothing. So, any uptick in crude oil prices will affect the consumer and business economy.
The expectation is that the consumer discretionary industry will struggle due to rising oil prices.
Meanwhile, we want to see a rotation in capital over to the producers and midstream providers that will see price appreciation due to the increase of oil prices on their balance sheet.
We’ll continue to monitor this trend and look to profit as a result.
Exiting on PTSI
As I noted in my video, we have to follow rules. So, we did experience a trailing stop trigger on P.A.M. Transportation (NASDAQ:PTSI).
We’ll sell today and take the gains. I’ll send another alert out in a little while to discuss.
We Have Three New Positions
I also explain that we have three new positions that we entered this week.
We are trading Skechers (NYSE:SKX) – which is the subject of my latest report, October Reversion. With this stock in oversold territory, I argue that now is the time to trade it.
Shares have pulled back over the last month, and I like a rebound heading into the fall toward the holiday season.
We’re taking advantage of the holiday supply chain crunch with Atlas Air Worldwide (NASDAQ:AAWW), a major investment by hedge fund manager Bill Ackman.
I think that this stock has an upside target of about $100 and will continue to provide investors with significant gains in the future.
Finally, we’re trading a reversion in American Axle & Manufacturing (NYSE:AXL). Shares popped about 3.8% on Friday, and our options trade is climbing.
We want to see this stock get back above $10 before we take our gains off the table.
Thanks for Joining
I want to extend a warm welcome to new subscribers after this week’s event.
I’m delighted to have you be a part of this experience, and I look forward to the chance to make you money.
Next week, earnings season will be in full swing. As I warn in the video, be cautious about supply chain factors.
We could see many selloffs across the retail industry in the weeks ahead.
We’ll instead look to capitalize on financial and energy stocks.
I always invite your feedback. Please shoot me a note at
Have a good weekend,