| February 26, 2015 | Archives | Unsubscribe | | | | | |
 | | | | Forget Oil -- Get Truckin' for Some Double-Digit Gains | | | - Another cheap oil trade
- Betting on the fuel-savers
- Plus: Rednecks and the karma police
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| | | Greg Guenthner coming to you from Baltimore, MD... 10-4 good buddy - today, we're goin' trucking...
And we're gunning for some double-digit gains from the cheap oil play I'm about to describe.
A play on cheap oil? OK, you might be skeptical after we had a cheap oil trade blow up in our face last month. But listen...
We thought rock-bottom gas prices would offer us some low-hanging fruit with UPS last month. But that fruit turned rotten when management announced 2014 earnings would miss the mark, which tanked the stock. The reason? Brown hired way too many seasonal workers to handle the Christmas rush. They blew it during the most important time of the year--and we got shafted.
That's what happens sometimes. It doesn't matter if the idea is right on the money or completely wrong. We got unlucky--them's the breaks. But we followed the rules, cutting our losses early. We didn't lose much. So we moved on.
OK, back to the oil patch.
Oil tried its hand at $55 this month--but quickly folded its cards. Spot price is treading water at $50. And as far as I can tell, it might not budge anytime soon.
So now we have a second chance at double-digit gains trading the cheap oil theme. And don't worry, we're not touching UPS...
Listen, oil isn't magically jumping to $100 anytime soon. As I said, it could fluctuate around $50 for the foreseeable future. That's great news for businesses using a lot of fuel. Operating costs are way down, which means higher profits. And higher stock prices. Check out the Dow Jones Transportation Average right now...
It's up a muscular 18% since the October bottom. Compare that to the Industrials, which are up less than 12%.
Breaking it down further...
Airline stocks look good these days, but most lost altitude after spikes in December and January. Railroads got derailed because many make money transporting oil, and the market's giving the back of the hand to oil right now. But there is one group in the transports where we see a perfect trade shaping up: trucking.
So get truckin' today. Over and out. | | | | | | | | | Like 1954 all over AGAIN More jobs than you could shake a stick at. Fat, juicy paychecks. Shiny new cars. Spacious new homes and amazing new gadgets. Thriving cities and vibrant small towns. After 13 years of war on terror, a worldwide financial crisis and five years of financial struggle, FOUR historical power triggers have finally come into alignment... And you won't believe what they could mean. | | | | | | | |  | | | | Rude Numbers | Targets, Predictions and Wild Guesses
| | | | $50.11 | buys a barrel of crude today. Yesterday's oil rally didn't stick-- the black stuff is down nearly 2% this morning... | | $2.81 | is the price of natural gas. Natty's rally is fading, too. It's fallen nearly 2% in early trading as well... | | $1,217 | is where you'll find gold futures today. The yellow metal is trying to put together a nice little rally to end the week. It's up a cool $15 today... | | $16.79 | is where you'll find silver futures this morning. Silver is finding it's mojo along with gold this morning. It's up more than 2%... | | 2,113 | marks the spot for S&P futures just before the morning bell. Stocks are looking to once again pick up where they left off... | | | |  | | | | Rude Trends | When to Buy... When to Sell
| | | "If I were a betting girl, I'd bet that none of those three stocks will be up a month from now," a reader predicts after reviewing yesterday's list of "redneck stocks" I happen to like right now. "If they tank, I'll consider it your karma for using socially-insensitive word choices, though the reason I won't be buying them is because of their numbers."
Spiteful...
Forgive me, but I don't know any rednecks who are so easily insulted. In fact, most of the country folk in my life wear some of the colorful descriptors of their respective lifestyles as a badge of honor. Plus, how do you know my employer didn't dig me out of some backwater, hillbilly town? Something to think about... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | |  | | | | Ignore At Your Own Peril | Today's Must Read Links | | | | | | | | | BE SURE TO ADD rude@agorafinancial.com to your address book. | | | | | | | Additional Articles & Commentary:
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