Unlike Wall Street, We're Not Running Scared From Oil's Recent Volatility

Please do not reply to this message. Replies to this message are routed to an unmonitored mailbox. You are receiving this email as a part of your subscription to Oil & Energy Investor. Your ability to alter your subscription information can be found at the bottom of this email. [Oil and Energy Investor with Dr. Kent Moors] February 15, 2018 [He's on Pace to See 3,390% Total Winning Gains Per Year]( The Night Trader is unlike anyone we've ever met... He's in the top 1% (of the top 1%). He only works five minutes a day. He lives by his own rules, doing whatever he wants, whenever he wants. And now, he's disclosing his [coveted strategy]( for the first time ever. --------------------------------------------------------------- [Unlike Wall Street, We're Not Running Scared From Oil's Recent Volatility]( KENT'S PREMIUM SERVICES [Profit Opportunity](: During one of the most volatile months for the market in decades, this [trading legend]( is showing his followers how to make a fortune for themselves. In fact, his readers just had the chance to lock down [an 1100%+ win]( in just two weeks. If that isn't BIG MONEY, I don't know what is...Now gains this big don't come along every day, but truth is, Shah's readers are no strangers to seeing winners. To find out how you can get the chance to make RIDICULOUS amounts of money... more cash than you've ever seen, just [click here](. Research Energy Advantage [Your Once-in-a-Lifetime Opportunity on This Energy Metal]( Trading Energy Inner Circle [This Three Minute Trade Sets You Up to "Win Both Ways" on Oil Prices]( Elite Micro Energy Trader [Buy This Vertical Power Company]( Dear Oil & Energy Investor, When oil trading ended at 2:30 PM Eastern yesterday, the West Texas Intermediate (WTI) had moved up 2.4%. Brent, the other and more globally used benchmark, had risen 2.7%. Both reversed a downturn that has enveloped the oil trade since the end of last month. You see, after reaching multi-year highs on January 26, WTI had declined 10.5% through February 13 while Brent slid 11.3%. Moreover, as the markets begin to show signs of finding a bottom - with four consecutive positive sessions through yesterday's close - the energy sector has continued to perform weaker than most of the other S&P 500 sectors. Because of that, analysts have started grasping at straws. Some are predicting a gradual lowering of prices from current levels... While others are taking their cues from more immediate production figures, supply levels, and demand estimates. Fact is, volatility has taken hold of the global oil markets. [Urgent: Make Millions During this Market Volatility with One Type of Stock]( After a 7-month period of remarkably low volatility in oil, the last few weeks been turbulent. And that has a lot of oil enthusiasts nervous. However, all of this needs to be put into perspective to understand what's really at work here. And that's exactly what we're going to do today... Oil's "Chicken Littles" Oil's meteoric rise over the past year has been extraordinary. In fact, WTI alone climbed 42.1% from June 21 through December 29. We had already surpassed my [second-quarter pricing predictions]( for both WTI and Brent... before January was even over. PROFIT OPPORTUNITY It's only February, and already oil's epic comeback has hit - even exceeded - my price predictions. Of course, with the wider markets in turmoil, some investors are frozen in fear (read: pulling money out of everything). But my premium Energy Advantage members are secure in their knowledge of the markets. They have access to a comprehensive briefing on not only where I'm predicting oil prices are going in 2018... A prediction that has already come true... But also on the best ways to profit as oil prices soar. To find out how to gain access to my [2018 Energy Forecast]( (which will lead you to my handpicked profit-plays), [click here](. But be sure to check it out ASAP... Oil prices are poised to skyrocket again soon, and I don't want you to [miss this opportunity](. Normally, at this point, I would comment on the overuse of short positions to profit from pushing oil down. This has been the normal sequence in the past. As soon as oil would show some weakness, "Chicken Littles" would populate the airwaves and proclaim the "sky is falling" (i.e., oil going down to less than $40 a barrel) and then, to the extent investors bought it, run all the way to the bank. A short play profits when an expected decline occurs. A player borrows a position from a broker and then immediately sells it in the market. Later, by or before a contracted time, they then go back into the market, buying back whatever the short was based upon, and returns it to the original lender. If the assumption proves correct, a profit is made on a declining underlying asset. For example, an investor believes XYZ stock will decline. It is currently trading at $10; it's borrowed and immediately sold at market. Later the stock goes down to $8, the short player enters back into the market, buys back the share, returns it to the original lending broker, and pockets a $2 profit. Shorts, however, remain quite risky. --------------------------------------------------------------- [Earth-Shattering News From The Pentagon (Tiny Defense Contractor Could Go Berserk)]( If you're an American Patriot, please pay close attention... because we're on the brink of the biggest defense boom in history, and the Pentagon delivered news that will blow your mind. You see, they've been quietly funneling billions into a [new generation of defense contractors](... one of them is a [tiny company]( with a top-secret technology that could put America back on top for years to come. And mark my words: When this news breaks, this tiny firm could soar through the roof. [Take a look](... --------------------------------------------------------------- If you are wrong and the underlying asset increases in value, there is theoretically no limit to how much can be lost. Early redemptions of shorts to avoid catastrophic losses will serve to fuel a further spike in price. OK, absent a major drop in global demand and/or an unexpected (and prolonged) rise in excess supply, it is the yo-yoing of the market via shorts that usually provides the rationale for prices moving south. Some shorting is inevitable, given the demand/supply dynamic in an environment in which every pundit knows there is plenty of extractable volume available for ready dumping on the market. The problem at this point, however, is two-fold. The Two-Fold Problem With Shorting Oil First, the short is resorted to far more quickly than is warranted. Proponents appear to have little else in the quiver. Over the past two weeks, for example, there has been little coming from market fundamentals to justify it. Second, when the decline in oil prices arises as a "backdoor" effect from a rapidly descending general market, shorts can overemphasize and artificially accentuate the downward pressure. [With Stocks on a Downward Spiral, Make This Move Now for the chance to Protect Yourself]( Remember, as I have noted here on several occasions, "paper" barrels (futures contracts) drive "wet" barrels (physical oil consignments in actual trade). On any given day, there are far more paper than wet barrels in the market. But it is the presumption of the trader that often puts a thumb on the scales. In an expanding price market, the grader will peg a contract price to the cost of the most expensive next available barrel. In a declining environment, the calculation is weighted toward the cost of the least expensive next available barrel. This is necessary to hedge risk, with options taken lessening exposure to larger swings. A balanced price is set by oil traders in both paper and wet barrels, but often the connection between the two is strained. When prices were north of $120 a barrel several years ago, traders in physical oil would tell me the price had been inflated by futures contracts well beyond what the actual value of the oil was commanding in the market. --------------------------------------------------------------- [The Saudis and the Department of Defense agree...]( The era of Big Oil is coming to a close. In one day, the U.S. Department of Defense committed $7 billion to the use of a new fuel more powerful than oil, natural gas, and coal combined. Even the oil minister of Saudi Arabia believes his country could completely stop using oil and gas. Be prepared for the total dominance of this new fuel in the global energy markets with the [complete analysis available here](. --------------------------------------------------------------- Similarly, more recently, when crude was dipping below $35 a barrel, those same traders were telling me the price based on physical demand was higher. Now in all cases, the element of arbitrage arises. Balanced Oil Prices A balanced price requires that the paper and wet prices converge as the futures contract reaches expiration. For that to take place, participants need to take positions on one or the other of the two sides to even out any divergences. It is a testament to the changing times that such arbitrage has been difficult to accomplish. Without the use of derivatives to bridge what is more frequently, a widening gap as futures contract exportation approached. All of which is a primer to what actually happened last week in what is the most important factor to take from that roller coaster of a ride. The slide in oil prices was exacerbated not be shorts but by the unwinding of long positions. Put simply, the prevailing attitude of traders moving into February was for oil prices to be rising, not falling. Sideswiped by the broader market contraction, those long positions (expecting higher prices) had to be sold (or options on contracts exercised, which amounts, in this case, to essentially the same thing) to mitigate losses. As the oil prices rebalance, therefore, don't be surprised if the pricing floor begins rising yet again. Sincerely, Kent ALSO THIS WEEK... YOU MAY HAVE MISSED... [This 100% Legal Tax Haven Isn't Just for Millionaires]( [The Death of Retail Is Your Chance to Make an Absolute Killing]( [All it takes is 10 minutes to set up the money-doubling opportunity of a lifetime]( [FCC approval sparks incredible ground-floor opportunity (don't pass this up)]( [Why the Middle East's Dream of a Post-Oil Economy is at a Crossroads]( In just over two weeks, I will be attending the annual Windsor Energy Consultation at Windsor Castle outside London. One matter we will be discussing involves a new "Energy Revolution" that is sending shockwaves throughout the energy sector, and it deals with the [Middle East's energy diversification](. [Stock Market Armageddon: A Millionaire Investor's Guide to Gargantuan Gold Gains]( On February 2nd, the stock market ominously crashed a staggering 666 points. The following week, the Dow plunged another historic 1,000 points. And another 1,000 points three days later... Bitcoin had its worst week in eight years. But gold held steady, and is now climbing. It's no secret the market mayhem has pushed gold prices higher. But if you're looking for [what could be the best way to invest in gold, you'll want to see brand new footage]( from our interview with legendary gold investor Rick Rule. In this video, he tells us about the kind of investments he's made to potentially [turn the market crash into a fortune](. [After Six Decades, the U.S. Is About to Hit a Major Energy Milestone]( In a 2005 meeting I attended, it was unanimously determined that a good chunk of U.S. natural gas demand would be met by imports of a new fuel within the next decade. However, last week it was reported that the U.S. would become a net exporter of crude oil and natural gas by 2022. This is a very big deal, [and here's why](. [Legendary CEO places $346 million wager - ignites insider frenzy!]( This energy-sector "rock star" guided his first company to an exceptional 20,000% gains for early investors. And while history doesn't always repeat itself, his new startup could put the first win to shame. In fact, he's so confident, he's betting $346 million of his own personal savings. Insiders are following his lead, and have frantically grabbed two out of every three available shares. And Citibank just accelerated its position by 2,622%. Think these guys know something big is ready to break? Find the details [right here](... [The Oil Money Play]( The stock market freak-out hit a crescendo on Monday, with the Dow plunging nearly 1,600 points at its lows. And not just the Dow; the S&P 500 and the Nasdaq Composite were similarly affected. However, even with this historic drop, oil prices haven't been affected to nearly the same extent. For their part, [crude prices have had a strong recent run](. [Why a Renewable Energy Push Won't Be Enough to Stop the Caribbean Energy Crisis]( I'm writing this week from the balmy Bahamas where my contacts have been telling me about their energy problems. Electricity generation is becoming a serious problem over there. The Bahamas government is looking to utilize their own natural resources rather than rely on international imports, and [here are the problems they're facing](. --------------------------------------------------------------- Share This Article: [Facebook]( [Twitter]( [More...]( mailto:?subject=Oil%20and%20Energy%20Investor%20with%20Dr.%20Kent%20Moors%20Ph.D.&body=Check%20out%20http%3A%2F%2Foilandenergyinvestor.com%2F --------------------------------------------------------------- You are receiving this email at {EMAIL} as a part of your free subscription to The Oil & Energy Investor E-Letter. Remove your email from this list: [Unsubscribe]( To cancel by mail or for any other subscription issues, write to us at: Oil & Energy Investor | Attn: Member Services | 1125 N Charles Street | Baltimore, MD 21201 North America: 888.384.8339; International: 443.353.4519; Fax: 410.622.3050 [Contact Customer Service]( Website: [( © 2018 Oil & Energy Investor All Rights Reserved. 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