Well, we’ve got another story of shortages this morning.
Seems like they come around every single day.
This time, it’s oil again.
Oil is up from about $53 per barrel roughly a year ago to over $86 per barrel right now.
And that doesn’t show any signs of slowing.
Especially not after a critical German oil network just got hit with a major cyber attack!
We’re already talking about severe energy shortages in Europe thanks to the conflict on the Russia/Ukraine border.
And it’s likely only going to get worse now that Mabanaft Group (energy) and Oiltanking Group (storage) are hit with this attack.
Expectations are, the effects could last close to two weeks as the companies just pay off their attackers. Wow.
Well, it’s not great news for the price of gas, but remember, there’s always a trading aspect to every story.
For months now, I’ve expected oil to shoot higher due to these shipping logjams and increased demand (post-lockdown) around the world.
Back in July, I recommended an “Opportunity Wave” on UCO, the crude oil ETF, explaining that I would take a long-term option position on a BIG move upward!
Heck, since the trade is already done and folks who bought in then have hopefully really enjoyed the ride, I’ll even share what I wrote back then:
I was right on the money with this call, because a mixture of technical indicators (my Fibonacci setups) and fundamental warning signs (headlines and global realities) pushed UCO higher.
That’s the ideal recipe for a mega setup: I always focus on technicals, but if you have a real-world catalyst or two telling you the same thing the chart is telling you: look out! That can be explosive!
As it turns out, I just identified another Opportunity Wave on a new ETF, and I’d love to share it with you.
This energy crisis in Europe is one major reason why I’ve set a personal option return target of 200% on this overlooked ETF.
Jeffry Turnmire and InvestPub do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.
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