Closing an Oil Winner (FCX)

Before we dive into the cheesecake, a quick word on oil. We’re of the opinion that this week will tell the tale for oil for the next four to six months, at least. The charts show that both the United States Oil Fund (NYSE:USO) and the Select Sector SPDR Energy ETF (NYSE:XLE), the first a proxy for crude, the second a measure of big cap oil producers and marketers, are presently at tipping points, moments in their investment trajectories that could just as easily bring them into a deep swan dives – bear markets the likes of which we haven’t seen in the oil patch for seven years – or pull them higher into rallies…

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Oil Back On The Rise

With last Friday’s options expiry we have six trades to report, a few of which put blockbuster gumbo in our pockets. We run them down for you now, one by one. Our first report is from our September 30th trade. The letter was called How to Profit as America Goes to Hell, and in it we recommended you buy CALLs on fast expanding restaurateur BJ’s Restaurants, Inc. (NASDAQ:BJRI), a company with a market cap in excess of a billion dollars that operates 150 restaurants focusing on deep-dish pizza and beer. Our argument at the time was that an entire cohort of unmarried twenty somethings were living at home, making a reasonable living and therefore had…

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A ‘Rising Sun’ Pairs Trade

Before all else, we’re going to revisit and close down a profitable trade. It’s a pairs move that we launched about six weeks back in a letter called Apples Fall and Cars Go Vroom!, in which we recommended he following action – buying TSLA April 230 CALL for $3.90 and selling AAPL April 135 CALL for $4.10. Every pair traded credited you $0.20. Our thinking at the time was very simple – technically, AAPL was due for a slowdown, having just achieved ‘overbought’ status by striking the RSI 80 level. TSLA, by contrast looked to have bottomed after hitting long term support and seemed to be headed higher. What happened since? Our prognosis for the two stocks proved…

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Clean Shaven Legs Review

Well, we did it. We arrived at the end of the year with our limbs intact, our pocketbooks bursting with newly won cash, and our minds… well… sort of. Anyway, we thank the Great One (not Gretzky) for his help, despite the fact that our mid-year predictions for most markets were weaker than usual. And we take a moment now to review those calls and, of course, to reward those of our readers with the keenest prognosticating acumen with the used Q-Tips that we promised them. Congrats to all who participated!   Before we announce this year’s victor, let’s look back at our own efforts. We’ll rhyme ‘em off, and you write in to comment…

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Short Term Profits on an Oil Bounce (XLY, SPY, XOM, USO)

We have an open trade that requires your attention. And depending on what kind of personality you have, it could go in two entirely different directions. It was a trade we opened in mid-August in a letter called The Outperformance Game. There, we spoke about the lack of excitement in the consumer discretionary sector; a corner of the market that generally fares well when consumers are confident and the economy is humming without worry. At that time it wasn’t the case, but we suspected the situation would change, and the discretionaries, as represented by the Select Sector SPDR Consumer Discretionary ETF (NYSE:XLY), would outperform the S&P 500. The trade consisted of a long XLY CALL…

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Horrifying Research Reveals Rally-Ready Market

It’s time again to peer into the darker corners of the equity market, where only the brazen and stout of heart dare to tread. Please do follow along. We’re going to look at three distinct sectors of the market today in an attempt to build a composite picture of where things are headed over the near and intermediate term. It’s an approach we’ve had good success with for a number of years. Perhaps, you’ll read on and gain something in the process. Here we go… Our first stop is the oil patch, where we often head to get a read on potential inflationary pressures. The rationale is – as goes the price of oil, so,…

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