Do You Own Enough Energy?
The way I learned it was that, "The Bigger the base, the higher in Space".
Meaning, the longer a range takes to break out, the higher and longer the eventual trend is likely to last.
In this case of Energy, we're looking at a monster bull market in everything else, while $XLE has continued to just grind sideways.
If this thing can get going, I think it has legs.
And what about Crude Oil at $250?
How many of you have that in your BINGO card?
Here's what the Bond market is pricing in for Inflation. There are a lot of ways to measure this, but a simple ratio between the Inflation-Protected Treasuries and Nominal Yielding Treasuries will show you exactly that.
There's no reason to over-complicate it.
I overlaid Crude Oil so you can see that they dance together:
The bottom line this: Investors, particularly in America, do not have exposure to Energy and other Natural Resources.
The S&P500 is ONLY 4% Energy. It's 2% Materials.
The Nasdaq100 is 0% Energy. It's 0% Materials.
Investors don't own it.
I like that.
Here are 7 names that you need to know to profit in Energy in the back half of this year.
Check out the link here.
Then let me know what you think.
NOTE: We'll also be talking about this on Wednesday night during our LIVE Monthly Charts Strategy Session.
Premium Members make sure to Register Here.
And if you're not a Premium Member of ASC your life has gone horribly wrong ;)
JC