Shah Gilani shows you how to take advantage of market momentum on oil stocks.
Category
Oil Stocks
The Oil Sector Is Getting Ahead of Itself - Here's How to Profit
It feels like 10 years ago, but it's really only been about seven weeks since that fateful April 20, when a COVID-19-driven collapse in demand pummeled West Texas Intermediate crude oil futures. Prices hit the floor, fell through it, and landed in negative territory at -$37.63 a barrel.
In those seven weeks, WTI has rocketed almost 200%. The S&P Oil & Gas Exploration and Production Select Industry Index has risen nearly 70%, though it's still down more than 24% for the year.
Over the past few days, though, oil benchmarks have been creeping 2% and 3% lower, which in my experience is a big, neon sign saying "Selling Ahead." And several marquee energy stocks like Occidental Petroleum Corp. and Halliburton Co. are also flashing sell-off warnings.
This reminds me of the old Road Runner and Wile E. Coyote Looney Tunes cartoons – remember them? One of the (many) cheesy running gags had Wile chasing Road Runner only to overshoot him at a cliff. Wile would hang there in midair for a second, have a "Maalox moment," and then drop.
That's not all that different than what's happening in crude right now. Both the commodity and most of its associated stocks entered what market technicians like me call "overbought" territory. Now they're dropping like rocks. Investors are starting to figure out if they're in over their heads.
How do I know? The answer is worth exploring because it can make you a sharper trader. There's one simple, small number you can look at in any stock chart that can tell you instantly how to play it.
I'll get into that briefly and then I'll tell you how to play the oil patch's precarious "Wile E. Coyote" situation… Full Story
Why Oil Is Plunging (and 2 Ways to Profit)
Oil prices were already down 50% year to date on Friday. They plunged another 25% yesterday.
Fears of the coronavirus spreading means that more people are staying home.
And as fewer people travel, there's less demand for oil – which causes the price to fall.
One way the leading oil-producing countries fight falling demand is by slowing production.
If they're able to decrease the supply of oil as much as the demand for it, the price should stabilize.
That's exactly why OPEC and Russia met last week. They planned to make the biggest oil production cut since 2008.
Unfortunately, the two sides couldn't come to an agreement.
Don't Miss This "Triple Play" Opportunity to Profit from Oil's Rebound
There's a lot of speculation over what the novel coronavirus panic will do to stocks.
That's why we've covered the best actions to take now, and we'll continue uncovering profit opportunities in these areas.
But more importantly, a huge cash cow has been revealed somewhere else.
You see, while the price of oil is down 24% in just the last month, demand isn't going away.
In fact, it'll increase this year.
This MLP Is a "Must Buy" - and It Pays 7%
The perfect stock is a combination of safety and growth. The MLP we're about to show you today is the perfect example of both.
Safety can be found with a dividend that will be likely paid no matter what the overall market is doing. We also want growth in terms of earnings acceleration that will be used to support and even increase the dividend.
It's a pretty simple formula. But where do we find stocks like that?
The answer is master limited partnerships (MLPs).
The Top MLP of the Week Will Pay You a Nearly 7% Yield
If you're a long-time Money Morning reader, you know it's no secret that we're big fans of MLPs.
That's why we're always on the lookout for the top MLPs to buy. MLPs are known for their excellent dividend payouts, reliability, and consistent distributions for income-seeking investors.
So, today, we've uncovered one MLP that not only pays 7%, but it also has great growth potential.
In fact, it could soar 110% over the next 12 months...
Warren Buffett Just Added a New Stock to His Portfolio... and VQScore Agrees It's a "Strong Buy" for 2020
Each quarter, investors clamor to dissect the quarterly filings of institutional investment managers with at least $100 million in equity assets under management.
These filings are known as SEC Form 13F. The documents tell you exactly what the some of the most sophisticated investors are doing with their money and the money of their clients or shareholders.
One of the most popular 13F's filed every quarter belongs to the Oracle of Omaha, Warren Buffett. Buffett is the CEO of Berkshire Hathaway Inc. (NYSE: BRK.A), who's stock sells for approximately $327,000 per share.
Buffett is considered the most legendary living investor, amassing an $86 billion fortune over the decades. His secret combines extreme patience and the purchasing of assets that he deems undervalued according to his proprietary intrinsic value calculations.
After examining his latest 13F, something extremely interesting stuck out to me...
The Best Renewable Energy Stock to Buy as the Solar Sector Heats Up
Renewable energy will inevitably displace fossil fuels one day.
And while investors squabble over the best renewable energy stock to buy, we've already got one lined up… because that day might be sooner than you think.
Oil Stocks Could Lose 95% of Their Value by 2050; Protect Yourself with This Play
According to a late-breaking report from investment consultancy firm Mercer, oil and gas stocks could lose up to 95% of their value by 2050.
While we're skeptical Mercer's doomsday scenario could play out, it reveals a serious opportunity in energy stocks right now.
The One Permian Oil Stock to Buy Before Its Big Rebound
Oil prices are set to rise in the United States as the summer driving season commences.
U.S. sanctions on Venezuela and Iran are having a profound impact on refiners' ability to procure crude required for diesel fuel.
Russia and OPEC (which includes Saudi Arabia) will continue to cut crude production to bolster support.
And optimism continues to rise about a trade deal between the United States and China.