Did You Anticipate Gasoline Futures 2-Week 12% Rise?
by Mike Paulenoff
February 21, 2021 • 11:14 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?
Join us at MPTrader for our analysis, discussions, and the identification of opportunities in stocks, indices, ETFs, commodities, and cryptocurrencies.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
Three hours before the July Fed 31, 2024 (FOMC) meeting, I posted the following chart commentary about my technical setup work on 10-year Treasury YIELD and its actionable longer-term Treasury bond ETF, the TLT (20+ Year T-bond, ETF):Heading toward Fed Time, 10-year YIELD and TLT (20+ Year T-bond ETF) certainly appear to be anticipating lower interest rate news or innuendos from the FOMC statement (guidance) and Jay Powell in his post-meeting press conference.
On August 15, with XLV (Healthcare SPDR, ETF) approaching Mike Paulenoff's target zone (noted in an April 18th post), Mike responded to an MPTrader member's question about whether it was "time to sell and find something with more potential?" Mike wrote: "My short answer: no, it is not yet time to sell (although I will never dissuade anyone from taking profits and from ringing the cash register). My pattern and momentum work argue that upside potential extends from 156 to 161.
On August 6th, when UBER was trading 62, this is what Mike Paulenoff discussed with MPTrader members about the stock's technical setup in the immediate aftermath of the company's quarterly earnings report:"UBER... produced stellar earnings, albeit a bit light on next quarter's bookings. The stock is up 5.9% in pre-market trading within a near-term setup that argues yesterday's spike low at 53.25 ended a 35% correction off of the March high at 82.14.
At 10:45 AM ET on Friday July 26, 2 hours 15 minutes after the release of important PCE (Personal Consumption Expenditure) inflation data, this is what Mike Paulenoff discussed with MPTrader members about SPY (SPDR SP500 ETF):"If I have a concern today it is the unfilled up-gap left behind from last eve's 4 PM ET close at 538.32 to the low of the AM session so far at 541.25.
On June 24, 2024, I posted the following chart-based commentary about PFE (Pfizer, Inc) to the MPTrader discussion room:PFE (Pfizer) has the right look of a setup that is on the verge of entering a central, bullish price thrust from within a December-June rounded bottom formation. Only a failure to push up through and close above the 200 DMA, now at 28.94, followed by a decline that breaks last week's low (6/14) at 26.87 will Neutralize my currently bullish bias... Last is 28.27...
