As seen in the movement on Friday, RF's prediction that people will kick "fake" commodities like Gold and Silver, in order to buy "real" commodities like, Copper, Aluminum, and Steel is coming true. I sold off most of my steel but still have CLF in my long-term account (bought at $18.10 - not selling a share yet, even though I'm up 7 points). I personally believe we will see Gold trade between $700-$820 soon, while "real" commodities soar. Every steel/aluminum was up +4% on Friday and production seems to be picking up.
On Friday, a huge movement went down in Oil/Natural Gas. I bought APC @ $44.70 (shown last week on the chart analysis) NGAS, and SD. APC closed above resistance, so I like my chances and SD/NGAS are small caps with juice. I sold half my NGAS at the close because it went up 15% in 20 minutes, so I am not a idiot. It's hard to tell if it's a pump and dump trade, or if it's got legs to run. Personally, Nat Gas is cheap, so it can roll. UNG is the etf to play it directly. CHK, APC, APA, and HK are ways to play natural gas too. As for oil, I like it here. Some serious money flew in Friday, so the reflation trade may be back on the table. DXO is the best way to play oil, but it's 2x Bull, so if crude moves 2%, this moves 4%. I like oil exploration names like RIG, DO, and NE.
If you want some cheap names look at, try: FTK, HERO, PQ, SD, NGAS, WRES, NXG, GLG, EP.
It's hard to say if this trade is forreal but I got some exposure in case it is. Anyway you look at it, it definetly a "sector in focus".
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FLOTECK WAS A $40 STOCK A FEW YEARS BACK AND NOW IS $2.50. IF IT GOES UP, I WILL PISS MYSELF. THIS MARKET WON'T DIE DUDE, SO ANY SPECULATIVE PLAY CAN RUN IF WE STAY STRONG.
ReplyDeleteERX IS ANOTHER PLAY, DOUBLE LONG DJ ENERGY INDEX. LARGE OIL PLAYS CARRY LESS RISK AND CAN WORK, LIKE A CHEVRON OR CONOCO. I LIKE HESS BUT IT'S BEEN ROLLING.
APC IS A GREAT CALL RF, I LIKE IT. CHESAPEAKE CAN RUN FOR A TRADE BUT NO INVESTMENT, LIQUIDITY FEARS THERE.