Jeff Clark’s “buy” signal in the oil patch … Jensen Huang crushes quantum stocks … Eric Fry’s “Road to AGI” has accelerated … how to play seasonality in 2025 Oil popped on Friday when news broke that the U.S. Treasury Department had imposed fresh sanctions on Russian oil. The gains are continuing as I write Monday morning as traders digest the anticipated effects on exports to India and China. From Bloomberg: The measures announced Friday targeted two firms that handle more than a quarter of Russia’s seaborne oil exports, as well as vital insurers and traders linked to hundreds of cargoes. The US also broadened sanctions on tankers that have already proved disruptive… The main target of the sanctions, done in coordination with the UK, are major Russian energy companies — Gazprom Neft and Surgutneftegas. The two firms exported about 970,000 barrels a day of oil by sea in the first 10 months of 2024, about 30% of the nation’s total flows on tankers, data compiled by Bloomberg show. In the wake of the news, Brent Crude (the European benchmark) has pushed over $80, while West Texas Intermediate Crude (the U.S. benchmark) trades at $78. But the biggest winner is natural gas futures, surging more than 6% since last Friday. In a case of lucky timing, our Digest last Thursday profiled the attractive investment set-up developing in fossil fuels In that issue, we highlighted how Louis Navellier, Eric Fry, and Jeff Clark were playing the opportunity, ranging from trades/investments in Big Oil, to natural gas stocks, to pipeline companies. Let’s rewind to Jeff Clark’s analysis, since the surge in oil last Friday just triggered the Bullish Percent Index for the energy sector (BPENER) indicator, which was the entry signal Jeff put on our radar. By the way, for newer Digest readers, Jeff is a 40-year market veteran who profitably trades the markets regardless of direction – up, down, or sideways. He uses a suite of momentum indicators and moving averages to provide clues about where stocks are going next. Here he is from last week: The BPENER is on the verge of generating a buy signal. And, if this signal plays out similarly to previous buy signals, then oil stocks could play a big game of “catch up” … Buy signals occur when the BPENER turns higher from oversold conditions [below 30]. That hasn’t happened yet. But the BPENER is in oversold territory. So, it could generate a buy signal any day now. It turns out “any day now” was last Friday. As you can see below, the BPENER leapt from about 28 to 33.33. 
If you read last Thursday’s Digest, you’ll recall that Jeff was eyeing the Energy Select Sector Fund (XLE) as his way to play this move. Here he is with what happened the last time we got this entry signal: XLE gained 5% almost immediately. It then dipped to a lower low in September before launching a more significant rally that generated a 15% gain less than three months later. So, although this isn’t an “official” trade recommendation, it’s lining up with the entry signals Jeff was waiting for. If you’re looking for a trade today, give this one a look. By the way, in the next two weeks, Jeff is going to unveil his strategy for playing Trump’s first 100 days in office. The aggressive policy changes and market volatility are going to be a gold mine for traders who act decisively. We’ll bring you more on this soon. | Recommended Link | | | | You have just days left to prepare for a sudden change in the stock market we believe will open the biggest money-making opportunity in our firm’s 20-year history, without any long-term risk exposure. Already, you could have made a 11,340% gain in 46 days on just one of the plays identified by our study, using a system that works with 83% backtested accuracy. Learn more here. |  | | Switching gears, are quantum computing stocks really dead money for 15 years? This fall, quantum computing stocks exploded higher, resulting in jaw-dropping gains. Some of these stocks surged 500%, 1,000%, even 3,500% in the last few months. But last Wednesday, Nvidia CEO Jensen Huang singlehandedly destroyed billions of dollars’ worth of market value when he threw cold water on the timing of quantum computing viability. Here’s Huang, discussing when he believes quantum computing will be of practical use: If you kind of said 15 years... that'd probably be on the early side. If you said 30, it's probably on the late side. But if you picked 20, I think a whole bunch of us would believe it. Leading quantum computing stocks fell off a cliff since then. Here are some of the losses between last Wednesday and Monday as I write: - Arqit Quantum (ARQQ) – down 50%
- D-Wave Systems (QBTS) – down 57%
- Quantum Computing Inc (QUBT) – down 60%
- Rigetti (RGTI) – down 63%
Collectively, this Huang-based selloff has erased well over $8 billion in market value from quantum computing companies. But our technology expert Luke Lango does not believe quantum computing stocks are now dead money. Let’s jump to Luke’s Daily Notes in Innovation Investor last week: We think [Huang’s timing] estimate is wrong. Given the plethora of real-world quantum applications already in-action today, we think that truly useful quantum computers are about 5-10 years away. But it makes sense that Huang’s comments created such a huge sell-off in quantum stocks because they were too hot for their own good. They ran too far, too quickly. They needed to cool down and pullback. They are finally starting to do so today. Eventually, this sell-off will create a buying opportunity. But not now. Don’t rush in to buy the dip today. Don’t catch the falling knives. Wait for technical support to show up. Wait for price-action to stabilize. Then, buy the rebound in quantum stocks. D-Wave’s CEO Alan Baratz also staunchly disagreed, declaring Huang “dead wrong.” He noted that D-Wave's quantum computers are already commercially viable and in use by clients such as Mastercard and NTT Docomo. Baratz’s comment illustrates the difference between various definitions of what “practical” really means. But what’s becoming clear is that versions of this technology are already here, and more advanced iterations are on the way, though the timing remains fuzzy. So, if you’re a quantum believer and can stomach the volatility, this sector meltdown is a gift. Get your buy list ready and watch for a technical entry point as Luke suggested. To follow Luke’s analysis and get his official buy recommendations and timing in Innovation Investor, click here. Continuing with news related to next-gen tech advancements, get ready for AGI…and probably sooner than you think To make sure we’re all on the same page, “AGI” stands for “artificial general intelligence.” It refers to the hypothetical intelligence of a machine that possesses the ability to understand or learn any intellectual task that a human being can. Last week, OpenAI’s CEO Sam Altman made the following blog post: We are now confident we know how to build AGI as we have traditionally understood it. We believe that, in 2025, we may see the first AI agents “join the workforce” and materially change the output of companies. We continue to believe that iteratively putting great tools in the hands of people leads to great, broadly-distributed outcomes. We don’t know exactly what’s coming, but it’s probably going to be big… and disruptive… and capable of directing the flow of billions of investment capital. Our macro expert Eric Fry has been monitoring this “Road to AGI” for many months now. In September, he began the clock on his “1,000 Days to AGI” countdown. Based on Altman’s blog post, Eric is accelerating his timeline: I’m convinced 1,000 days is the far end of when we’ll achieve this milestone. AGI could be upon us much sooner. Immense technological changes are coming. Those who understand and embrace these changes can set themselves up to build wealth on a larger scale than ever before. Because of AGI, we could be entering into the greatest period of wealth creation that mankind has ever known. Now, there are no pure-play “AGI” companies right now. As we’ve profiled in the Digest, we’ve seen the rise of AI Builders (the companies building AI data centers, making AI chips, running AI fabs, etc.), and now we’re watching AI Appliers take the baton (the companies deploying new AI applications on top of all this infrastructure). But there aren’t great “AGI” stocks (OpenAI is a private company today). So, without any obvious AGI picks, here’s Eric with what he’s doing: What the market does offer, though, is an array of indirect plays on the race toward AGI. My team and I have been focusing on the “next wave” of stocks that do not yet reflect their AI-powered growth potential. So, to take advantage of this current “pre-AGI” market, I’ve identified several companies are well positioned to benefit from the race toward AGI. Eric just put together a free video compiling his research which you can check out here. | Recommended Link | | | | Legendary investor Louis Navellier, who correctly predicted Trump’s win… Believes this “day-one” Trump move is about to create a rare opportunity for everyday Americans like you to turn a small stake into real wealth in the stock market. But hurry… After January 20th, it could be too late. |  | | Finally, if you’re looking to put the trading odds in your favor, don’t miss the new Seasonality Tool from our corporate partner, TradeSmith Imagine having an investment roadmap for 2025 – a way to know when to buy and sell your favorite stocks for maximum potential gains. This isn’t a fantasy. It’s a reality made possible by our corporate partner, TradeSmith, and one of the biggest breakthroughs in its history. TradeSmith’s new seasonality trading system reveals hidden, recurring patterns in the stock market that show the best times to buy and sell specific stocks based on historical data. Here’s TradeSmith’s CEO Keith Kaplan with more: You can’t just look at a pattern repeat and apply it to all stocks. Each stock… each signature… has its own pattern. When we were researching seasonality… testing day after day, month after month… we found that we needed two proprietary signals for each stock to make seasonality a consistent winner. And we did it running 2.4 quintillion tests in total, using thousands of custom-built algorithms. In the end, we finally had a tool that could identify the optimal seasonality score for each stock. That helped confirm a buy signal. Then, to take it to the next level, we found the ideal Relative Strength Index (RSI) reading for each stock, too. That was when we hit light speed on our breakthrough! And it’s why this strategy is so phenomenal (and even possible). Keith and his team ran scores of backtests and found that this targeted approach resulted in a win rate of over 80%... and generated major outperformance against the S&P 500 – more than double. Last week, Keith held a special broadcast that dove into the details of how this seasonality trading tool works, and how you can use it to snowball your trading gains in 2025. You can catch a free replay right here. Have a good evening, Jeff Remsburg | 
0 Response to "Oil Triggers a “Buy” Signal"
Post a Comment