Energy Trade Looking Good With Oil up Again
Contributed Opinion

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USD index futures are up 0.24% this morning, with the 10-yr. And 30-yr. yields also up 1.34% and 1.40% respectively.

Gold is down 0.65% ($17.40), while silver (+0.66%), copper (+0.70%) and oil (+2.69%) are rising.

Equity futures are off modestly (-0.09% to - 0.21%), and risk barometer Bitcoin is down 3.94% to $61,262.

The energy trade that was executed yesterday morning was proof positive that "it's better to be lucky than to be good" as my Energy Select Sector SPDR Fund (XLE:NYSEARC) $87.00 "Buy" limit was hit shortly after the opening bell and literally just before oil prices engineered a massive reversal to the upside.

I also had a Buy rating on Hemisphere Energy Corp. (HME:TSX.V) at CA$1.90, which was also triggered before running to a 52-week high at CA$1.97.

Oil is up sharply again this morning, which should bring about massive short-covering in both the oil futures and the energy stocks, so keep a close eye on the RSI for both crude and the XLE to avoid getting mesmerized by an overbought market. This trade is a date, not a marriage.

With my trading account cash down to 23.67%, I still have lots of room to add to positions into an October swoon in these markets, and I can assure you that I will be adding to the energy trade if it backs off. The copper-gold duo remains my top sector holding going into year-end, and I hopeful that Freeport-McMoRan Inc. (FCX:NYSE) can pull back into the mid-$40's so I can replace the call positions and the 50% of the stock position that I sold at $51.50 (the top) a few days ago.