You may think it is too late to get into this sector after Energy sector has been proved to be the leader sector together with Healthcare. Actually it is just the beginning. Several Companies in such sector e.g. BTJ, DXPE reported record sales booted by the strong demand, which matching with the information provided by Bobobobo.(pls check his post in the previous thread). The Summer is coming, sunny everywhere, enjoying the sun shine, huh? But pls don't forget hurricane is coming too!
The crude oil continues to increase by far,especially these two days.Have you seen the gas station's price change? Wow, it jumps from 2.50 to 2.90 just overnight today.
Let's see what behind this oil change.
Quoting from analysis:
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Frightening forecast
Predictions are rolling in almost daily now from various forecasters around the globe all claiming that the La Nina effect will increase the number and intensity of the Gulf storms this hurricane season. Some are calling for as many as 17 storms that will hit all along the Gulf Coast. The Gulf, especially the Houston area is well known for its refineries, off loading terminals, and drilling operations.
A direct hit into that area would be devastating. Even if there is no direct hurricane hit, just the threat of hurricanes in the area leads to disruptions and slowdowns that absolutely cut into supplies. These disruptions to supplies frequently occur during the height of the summer driving season and this year will be no different.
One two punch
In addition to the forthcoming weather concerns the ongoing geopolitical problems the U.S. is having with Iran and Venezuela are making matters worse.
If those situations continue to erode and major storms hit the Gulf Coast we could see gasoline prices shoot beyond $4 a gallon, especially in California and other high tax states.
Already we are seeing refinery runs getting tighter and tighter each week. As summer driving season ramps up we will begin to see those gasoline supplies deteriorate faster and faster. By August the situation could be come critical.
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As a matter of fact, get your account exposed to energy sector, such as VLO,BHI,and
BTJ,DXPE. Both BTJ and DXPE are added into IBD TOP list since last weeks. With the hot summer going , pumping the usuage for air conditioner, it should be really juicy for you to enjoy the upcoming consumption. I bought DXPE just after its ER. Both DXPE and BTJ's ER confirm my thinking, while we are driving, we need to get paid and protected! Besides that, trading into NMX with call could be an amazing play too.
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By the way, If not because TXN brought the optimism into semi sector, BRCM will be buried.
6 comments:
布什增兵波斯湾
油价天天往上窜
千户未雨筹谋划
股票板块选能源
你有才阿,和合。
you mentioned NMX, is it related to energy play?
it is the place to trade commodity including crude oil:)
the hedging should include the exchange too.
以BTJ为代表的OIL SERVICE 公司登上IBD 100 黄榜并不是最近的事,去年8-9月份的
第三名正是BTJ,那时候17.x,呵呵。
我是觉得有点 over extended. 同意你的分析,但是大部分是不是也已经price in了? Anyway, I am gonna have a small position in this sector too, will choose one or two this weekend after reading more.
yes, I found out that most of oil stocks have been priced in , but still some soup remaining. For example, today's DXPE downgraded will be a chance to get in this hot pizza:)
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