Your Daily Profit
*****Bullish on Oil?
*****43% Average Gain
*****New Feature for Daily Profit
The International Energy Agency (IEA) reported that
demand for oil is picking up. Instead of the 3% drop in demand, the IEA says
that it now expects demand to be off a whopping – drumroll please – 2.9%. Sheesh.
When you’re talking about 83.5 million barrels a
day, a one-tenth of a percent revision should not be headline news. Somebody
owes me an apology.
But seriously, I think it’s pretty much understood
that any statistic thrown out there by some agency or department is subject to
revision. In fact, I get suspicious when numbers don’t get revised…
*****Economics is the study of a human system of
production and consumption of goods. And because it’s a human system, there must
always be some margin for error.
Especially at this stage of the recession/recovery,
numbers are going to swing wildly. Retail sales, foreclosures, payrolls, it
doesn’t matter – the headline number will get revised.
Of course, this is what makes investing interesting.
The data can only take you so far. And if one relies solely on economic data for
buy and sell signals, poor results are inevitable.
*****As you know, I was quick to jump on oil stocks
at the start of the current rally. Oil was trading around $40 a barrel when I
recommended three small oil stocks in my SmallCapInvestor PRO
advisory service and also recommended Graham Corp (AMEX:GHM)
here to Daily Profit readers.
Obviously, investor sentiment toward oil has changed
dramatically since I first started pushing oil stocks. That’s what happens when
an asset doubles in price in just a few months.
In fact, the bullish sentiment behind oil and oil
stocks is so extreme that I’ve told SmallCapInvestor PRO to sell
one oil stock and take the 142% gains we had off the table. Oil prices are due
for a big correction, and there’s no way I’m going to lose such a nice gain.
I’ll be buying back oil stocks sometime this summer.
And if you missed the big gains in oil this time around, don’t worry, you’ll get
another chance. I’ll cover oil consistently here in Daily Profit. And you can
also get my stock recommendations on the next sector to run up,
So far this year, SmallCapInvestor PRO members are averaging 43%
gains per recommendation.
*****I have one more announcement today. Jason Cimpl,
the technical analyst for TradeMaster Daily Stock Alerts has
graciously offered to start sharing his weekly forecasts with Daily Profit
readers on Fridays. So tomorrow, you should get your first video chart analysis
He’s done a great job of keeping his readers in
profitable trades during this rally. And his insights into what’s driving stock
prices and where they are likely to head next should prove a worthy addition to
*****As always, please write and share your thoughts
I’ll talk to you tomorrow.
06-11-2009 1:28 PM