From the desk of Steve Strazza @Sstrazza
Crude oil is at its highest level since 2014 after it took out resistance around 76.
Energy stocks just ripped off of support and are back above a key level of resistance, trading at highs not seen since early 2020.
Economically sensitive commodities and cyclical stocks, in general, remain very well bid.
Meanwhile, the mainstream media is hung up on narratives surrounding stagflation and the possibility of a global recession. But we’re just not seeing this at all when we look at price.
Risk assets are performing as well as they have all year. And, when we look outside the US, while there’s definitely been selling pressure around the world, the areas that stick out all seem to have something in common.
The energy-dependent countries are showing leadership.
This supports the recent price action from energy futures and stocks, many of which have been ripping to fresh highs.
In today’s post, we’ll take a look at some international equities we can use to express a bullish thesis on higher oil prices — and higher prices for risk assets more broadly.