Double The Gas Prices

JC Parets
August 24, 2022

Gas prices are going up?

Good.

That means our Energy stocks are probably doing well.

You see, we don't have any control over the cost of Energy. I don't work for the government. I'm not in the Energy business.

I don't know the first thing about drilling for Oil or Gas.

I'm just a random dude with a computer and some smart drinking buddies.

So for me, I have 2 choices:

1) Energy costs go up while I'm not invested in Energy

or

2) Energy costs go up while I am heavily invested in Energy.

Which one would you choose?

Or maybe just sit back and pray that Energy prices DON'T go up? A lot of people choose this one.

But in my experience, praying is not a good risk management strategy over the long-term. Praying doesn't add to winning positions. Praying won't stop you out of the losing ones.

So when I see the Energy Sector Index Fund $XLE break out above all those former highs from 2016 - 2018, I simply CANNOT be short Energy.

In fact, how can we not be very long Energy stocks?

The levels are well defined.

If you're fortunate enough to have the means to have energy exposure, I think there's no excuse not to, as long as XLE is above 79.

A lot of people don't have that ability.

I do. And if you're reading this, chances are you do too.

This is the situation we're in.

Do you agree with this approach?

Let us know what you think. We love to hear from you.

And remember, you can filter out just our favorite Energy trades using our new Rangefinder App.

No more old school note pads. No more watchlists. No more goofy spreadsheets.

Everything you need as a reader of Allstarcharts is in our new App: Rangefinder

Check it out and then let me know what you think.

We really appreciate the feedback.

Give us a call +1 (323) 421-7910 if you still don't have access and we'll get you set up.

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