With prices skyrocketing for goods around the country, inflation is on the minds of many Americans. Food and energy prices are two core things the Federal Reserve looks at in regard to inflation.
So in today’s video, I’d like to talk about another area of concern: energy prices and inflation.
Last April amid the early COVID-19 pandemic, oil prices briefly went negative (minus $40.32 a barrel) for a few hours. To my knowledge, that’s never happened before but it did in 2020 as demand cratered.
Since the pandemic low, oil prices have rebounded to a recent high of about $68 a barrel. If you want to look at oil prices and inflation, you have to know that prices rarely rise that much, that fast.
And all things being equal, when oil prices start going up, guess what happens to oil stocks…
They go up as well!
Check out this chart of Chevron Corp. (NYSE: CVX) and you’ll see what I mean…
Chevron was a profitable trade in my KingMaker Alerts in February, hitting for nearly a 6% gain in just three days. In April, we scored an 83% gain on an option call in Exxon Mobil Corp. (NYSE: PXD), and another 6% on the stock — in just two trading days — so check out KingMaker Alerts!
The bottom of the pandemic is clear. Then we have a big move up before it rolled over, and then just took off with a lot of volume, which is important.
So oil stocks are going up but energy prices and inflation are going to be a problem. Check out my short video and we’ll discuss energy prices and inflation in depth…
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P.S. The Advantage of Trading During Wall Street’s Weakest Hour
One former hedge fund trader just pulled back the curtain on a new strategy that only requires paying attention to the stock market right after it opens and before it closes.
From the time the market opens until about 3 p.m. EDT, Wall Street has the upper hand. But once 3 o’clock rolls around, the big funds on Wall Street start bleeding cash… which sends certain stocks crashing lower.
Take advantage of these cash bleeds during Wall Street’s weakest hour for the chance to make huge returns the next morning when the market opens again.