| Hey Traders, Every Monday, my team and I gather for the Ticker Highlight Show – where we share our favorite and least favorite stocks of the week and give away a FREE, simple directional trade based on one of them. But for me, the only ticker that matters right now is oil. When W&T Offshore, Inc. (Ticker: WTI) rallies, the market falls – and when WTI falls, the market rallies. It is our best temperature gauge for what is going on in the Middle East. The action on Friday continued the trend of traders trying to sell oil futures in the morning only for it to rally as the day progresses:
Every day last week crude opened near the lows and then rallied as the day wore on. The S&P 500 in turn reacted the opposite, opening higher only to give up gains:
When this crisis is finally over, there is going to be a major reversal in energy. I would note that as hard as crude has rallied, the Energy Select Sector SPDR Fund (Ticker: XLE) has not moved NEARLY as much:
XLE is only up about a dollar since last Friday. Right now, I think oil is overbought and XLE is underbought. I like going long XLE and then buying puts in United States Oil Fund LP (Ticker: USO) or oil as a hedge and truthfully a nice pair. Another stock I really like that got taken to the woodshed last week is Alphabet Inc Class A (Ticker: GOOGL):
It closed the week on the lows and looks like an intriguing long. Be sure to join us on Monday for the Ticker Highlight Show – and find out which stock will be our choice for a FREE options trade. Add it to your calendar here. See you then, | 