The Big Short In Energy Looks Super Timely

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

One of the biggest stories of 2020, and one that will go down in history, is the total price collapse of crude oil and the subsequent spike in oil prices that followed.

It was on April 20 that WTI crude plunged into negative territory, bottoming out at -$37.63 per barrel. As of last Friday’s close, WTI had rallied all the way back up to $31.84/bbl.

The turnaround marked an amazing feat that was juiced by widespread production cuts and massive short covering. I see this snapback rally as an incredibly good opportunity to short crude and the energy sector as a whole.

The global demand for oil, largely due to China’s contracting economy, is slowing. Saudi Arabia’s and Russia’s unwillingness to cut back production in late March triggered the gradual selling pressure that culminated with the waterfall whoosh lower in mid-April.

The base case for shorting the energy patch is three-fold. First, the world is awash in crude oil. As a result, Russia, OPEC and non-OPEC nations will ultimately cheat on quotas to survive economically. Secondly, the global demand for oil is waning as renewable energy is making dramatic progress in replacing fossil fuels. And thirdly, a growing number of pension funds, mutual funds, hedge funds and retail investors will no longer own shares in carbon-generating companies.

Against the bearish backdrop, I’ve recommended that the subscribers of my Breakout Profits Alert trading service short the Energy Select Sector SPDR ETF (XLE) by buying Long Term Equity Anticipation Securities (LEAPS). The top 10 holdings in XLE make up 77.76% of total assets.

Exclusive  The Time Has Come for Main Street to Show Big Tech How It’s Done

Investors and traders who want to get in on this trade should click here and join as a new member to leverage both long and short trades using LEAPS.

I am looking for (and recommending) what I consider to be generational trades that have the potential to make 100%-500% gains per trade. Don’t miss out on this and other opportunities. There is a lot of money to be made with LEAPS, and I have the picks you need to cash in on this relatively little-known niche in investing.

Like This Article?
Now Get Bryan's FREE Special Report:
Top Monthly Dividend Payers

Get paid every single month by some of the world’s biggest companies.

Get Access to the Report, 100% FREE


img
previous article

Aurora Cannabis Corp. (NYSE:ACB) is poised to benefit from the looming cannabis industry consolidation and we now have data to show that the prediction I previously made is coming true. ACB just issued $40 million in stock to buy its way into the U.S. cannabidiol (CBD) market. The acquisition in question, a company called Reliva, is small but growing fast. While $10 million a year in revenue is only a drop in the ocean for established corporate giants, it makes a big diffe

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE