Did You Anticipate Gasoline Futures 2-Week 12% Rise?
by Mike Paulenoff
February 21, 2021 • 10:14 AM EST
Back on February 3, Mike Paulenoff highlighted the potential for a continued rise in gasoline futures.
He told MPTrader members: "Could it be that gasoline is in the eye of a perfect storm? A post-covid, accelerating US economy, a consumer flush with cash ready to jump into the car to spend in restaurants (hopefully) and travel, an Administration looking to reimpose harsh regulations on drilling, fracking, and refining, which reduces supply in an economy that will depend on fossil fuel for years to come. And if this 'Perfect Storm' progresses, won't it be inflationary, or at the least, raise inflationary expectations?"
During the subsequent two weeks, RBOB climbed relentlessly to its Feb 18 multi-year high at 1.85 (see our chart), up 12% from Mike's Feb 3 update.
This contributed to propelling the overall energy sector higher, with the XLE (S&P Select Energy SPDR ETF) up 17% and OXY (Occidental Petroleum) up 29%, two components of Energy that Mike monitors and updates frequently for members in his MPTrader Coverage List.
What's next for gasoline now that it has hurdled a resistance line that originated in October 2018 near $2.00/gallon? Will it impact the CPI, consumer behavior, and the underlying energy sector components?
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On March 30, with Salesforce.com (CRM) trading at 210.95, Mike Paulenoff wrote MPTrader members:
"The relentless stair-step decline within the Sep.-Mar. down-channel is nearing completion ahead of my expectation of a powerful upleg that revisits and takes out the ATH at 284.87."
Fast-forward to last Thursday afternoon, April 8, when CRM finally received some long-awaited price support from Wall Street.
On March 8th, when XLI was trading at 95.88, this is what Mike Paulenoff discussed with our MPTrader Members about the S&P Industrial SPDR ETF:
"In addition to the XLB (Materials SPDR), another vehicle (arguably a better one) to ride the infrastructure spending narrative, is via the XLI Industrial ETF.
Soliton (SOLY) rallied 37% in the weeks after Mike Paulenoff highlighted it for MPTrader members on March 10. Where's it headed next?
SOLY is a medical device/biotech company developing a promising product, with a 2-year chart setup that caught Mike's attention early in the year, suggesting sooner than later that price would reflect the underlying company fundamentals.
Early on March 10, with the stock at 13.
On Monday morning March 1, Mike Paulenoff alerted MPTrader members to a potential up-move in U.S. Steel (X):
"If an infrastructure plan really is doable early in the Biden Administration, and if the 440% upmove from the March 2020 low to the Jan. 2021 high has not discounted just about every conceivable growth scenario, then X is turning up into another upleg as we speak. As long as any forthcoming weakness is contained in the 16.40 to 15.
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Mike frequently discusses the technical set up in SRNE overlaid on related company news about developmental drugs in its pipeline, and its sizable and significant short position.
