We are long oil through an oil stock and an energy ETF. These positions have been in our portfolio since purchasing them during the Brexit selloff. WTI crude is on the cusp of putting in a head and shoulders bottom, having broken its downtrend a while ago. Targets are $62 then the low $80’s should the $52 neckline break. So far, volume is encouraging for the neckline break to materialize. I am targeting the first level of resistance at $62 or thereabouts as my likely exit point.
Natural gas recently completed a bottom head & shoulders formation, and crossed its next significant level of resistance having broken out at $3. Its done this before, as noted in the 2012 head and shoulders formation. Adding to its potential, the commodity has just entered into its seasonal period of strength. We took a long position in a natural gas equity last week. Traders can consider equities tied to its price, or a direct play in the commodity through an ETF such as UNG or HUN. Nat gas looks to have a target in the $3.80 – $4.80 zone – suggesting the potential for a very nice upside.
BNN last week
For those who missed my BNN show last week – here is the clip.
Capital Idea’s Newsletter
Regular BNN watchers will recall Mark Bunting’s long history as host of the MarketCall program. Mark has been involved in a new newsletter aimed at providing investors with stock and investment idea’s – with contributions from Portfolio Managers like myself and others. Here is a recent newsletter published by Capital Idea’s, featuring an interview he conducted with me surrounding the smart/dumb money index.