Last week saw oil prices gap up on Friday on the Trump air strike news. I have been bearish on oil now for years, but we may now finally be at the start of a real rally for oil and energy stocks. There is going to be huge potential in catching these stocks right. Oil is not Bitcoin! It is not simply something people trade on their app as part of an internet virtual currency fantasy, but something used in real life all of the time. Many energy stocks pay huge dividends.
The action in several key oil stocks by Friday will tell us though whether they are finally turning up for real or not. Last time there was a Middle East flashpoint news a few months ago when the Saudi oil facilities were hit oil and energy stocks gapped up and then sold off the next week to dump.
If the bear oil trend that has been in place for years now is gone that won’t happen again. So I’m watching HAL this week to see what it does.
If HAL can hold these gains and consolidate and breakout again it will begin a full blown stage two bull market.
And many key oil stocks have a chart just like this one.
If oil holds up and rallies here I do not think it will be driven by Middle East news, but by a much bigger trend. That’s the commodity cycle in which metals go up first and then other commodities typically start to go up a year later.
And all of that is of course linked to what I believe is actually going the be the biggest trend of the next ten years. I talked about that in this video posted last week. That trend is putting a lot of things in position to rally if they can digest their recent gains.
-Mike
