Prices for oil and natural gas are at levels that are incredibly profitable for any company that is pumping them.
Those of us in the numerate community will continue to own XOM because it's just too darn cheap.
These favorites of experts are best-of-breed in the energy space.
Is this a short term deflationary setback or the start of a more ominous trend to emerge?
Supply is under pressure by exogenous factors and demand just keeps on truckin'. Here are names I would tap into.
Here's how I'm playing it as oil stays above $70.
The technical patterns of companies in the sector indicate they should underperform the broader market in the near term.
Oil prices tend to struggle to hold gains beyond mid-July.
A change in market behavior is in action as oil appears to top out and Treasuries, gold, and the U.S. dollar have all managed to grind higher together.
The choice is clear among large-cap producers that have been outperforming.
There is no shortage of oil, it's a timing game being held back for as long as possible to get the best price possible.
Plus, quick looks at Tesla's car deliveries, Amazon's CEO change and Didi Global's post-IPO downdraft.
But the world - or the Western world, anyway - is hell-bent on decarbonization of its transportation system and energy production.
Just because the volume is lighter, it doesn't make the gains any less real.
And that leads me to the natural resources space.
Let's analyze the payouts and prospects for Exxon, Chevron and Shell.
How peculiar that the last day of a calendar can still drive frenzied activity given that most folks can follow their money on a daily or even real-time basis these days.
Play that dynamic in your portfolio.
Perhaps the most important intermarket relationship is the correlation between crude oil and the S&P.
China buys low and sells high when it comes to commodities, which makes its latest moves worth watching for telltale economic signs.
The oil consortium can cause prices to swing to and fro by manipulating supply, so it's worth watching its moves.
Some are saying that this is the most important Fed meeting in ages.
Exxon Mobil continues to move forward with oil discoveries outside the U.S. as much of the world remains caught in an energy poverty trap.
Plus, the Senate passes a big, fat bill to promote the nation's ability to compete on the technology innovation front.
We have never seen a bull run survive this large a net long holding.
But will they get greedy and let the market get too tight over the summer?
I would be a buyer of these calls.
And we have to have a panic point if we are going to be long a name such as this.
A positive environment for traders looks likely to continue Tuesday.
But you'll be dealing with exchange rates, local elections, and all manner of other externalities.