Dear Reader,
In October 2021, I predicted - on air - that Russia would storm into Ukraine.
A month later, Kenny Glick and I called the top of the market.
Then, the next month, we talked about an impending food crisis. Shares of Archer-Daniels-Midland Co. (ADM), my favorite stock to trade for 2022, shot up like a rocket over the next five months. At Midday Momentum, we've been ahead of major trends, acting immediately on ideas for how to make money on major Flashpoints around the globe.
For the last week, I've been (figuratively) shouting at the top of my lungs about the Permian Basin, a massive oil patch in Texas and New Mexico. As I'll explain during my special live event tonight, there's a massive profit opportunity in this region, and there are signs the national media is finally starting to catch up.
What can I say? I love to say I told you so. Now, let's go make even more money.
This Flashpoint Is Ready to Go "Boom"
Bloomberg has finally gotten around to the gathering oil boom in the United States. Writes journalist Rachel Butt:
The US energy patch is ripe for a takeover boom as oil and gas producers flush with cash turn to dealmaking to find new sites to drill.
Energy producers raked in record profits after Russia's invasion of Ukraine sent crude prices soaring, helping them rebound from their crash during the pandemic.
Companies like Exxon Mobil Corp. (XOM) are flush with cash. They're already linked to a deal with Pioneer Natural Resources Co. (PXD), one of the largest operators in the Permian.
The rebirth of the Permian has been a long time coming. This is where the Bush dynasty made their money starting in the 1950s. But the advancements in fracking and lower costs of production have made this place the location to drill for American oil. Texas remains the most friendly state to the oil industry - and major companies are flocking to the region to seek deals to buy land and pump cheap, American crude.
This feels like a land rush ready to happen - the biggest boom since the Bakken. But what's different here is the size and scale of this region and the lower costs of production for companies eager to keep profit margins high.
You might think that the M&A activity will drive up activity in terms of drilling. The opposite might actually be true. The wave of M&A could quickly create a list of many eight to ten "super drillers" that slow production, increase efficiency, and drive up the price of West Texas Intermediate (WTI) crude through supply consolidation.
They will benefit at the expense of Americans - as too will OPEC, which is eager to keep oil prices elevated. But the smaller producers have plenty of incentives to sell. In fact, the producers on the list I'll reveal tonight have great margins, strong cash flow, little to no debt, ample acreage, and attractive production capacity.
This will be one of the biggest stories of the year, and I'm on top of it. I'm dishing up my top M&A plays to viewers tonight. So, click this link, reserve your seat, and I'll see you there.
Today's Momentum Reading
WORLD'S BIGGEST INDICATORS
Recap: The World's Biggest Indicator (Momentum) is Red...
There was quite a reversion from the Buy the Dip crowd this morning. That said, we remain negative in momentum.
This Could Be the Hottest Flashpoint of the Year
So go here to RSVP and get ready - I'll see you there tongiht at 8 PM.
What You Missed
My friend Kenny Glick has a unique perspective when it comes to trading during earnings season. Instead of spending his time analyzing reports, he focuses on trading in his own Private Bull Market.
Kenny doesn't concern himself with whether earnings expectations are met or missed. He doesn't care if Meta's earnings dropped 28% or if Microsoft is working on a new version of Bing.
Why? Because he's developed a strategy that allows him to trade as if the market is always going up.
Rather than attempting to predict reports or make trades based on speculation, Kenny relies on a proven indicator to target high-potential gains. This approach has led to impressive profits during past earnings seasons, such as:
- 650% on TJX in a single day
- 585% on Wells Fargo in just 5 hours
- 848% on JP Morgan in a mere 3 hours
This Thursday, Kenny and I will be hosting a live exposé where we'll reveal the inner workings of his Private Bull Market strategy. I'd like to personally invite you to join us and learn from the master of VWAP himself.
To add this exciting event to your calendar, simply click one of the calendar links below:
Add event to calendar
Stay Liquid,
Garrett
The post Our profits are under their sand... appeared first on Midday Momentum.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.