Suncor - Pain to Pleasure and Pleasure to Pain
Updated
The truth is that the energy sector has been doing really well. WTI Crude appeared to can't stop won't stop, and then Natural Gas appeared to can't stop won't stop.
Now, both NG1 and WTI are going to dump as the Federal Reserve points a nuclear bomb at the so-called "inflation," which in reality are high commodities and high stock prices.
Shortly it will appear that the Party is over for commodities and stocks, and this will provide a great deal of pain for people who have bought this pullback from $53, not realizing that the knife has yet to cut sufficiently deep.
However, natural gas and oil are something that the world cannot do without, for mankind is paralyzed without electricity, and no matter how much of a leftist you want to be and how much of the ESG Kool Aid you've drank, the cold truth is that without coal and natural gas you won't have electricity for your computers, and without oil, you won't have a shipping and transportation network.
A fundamental lack of either electricity or transport would threaten the ruling North American Communist Party's stability, and so they will be maintained, but the prices will drive ordinary people out of the market, and you will see social credit and digital identification-based fuel rationing during this time period, if all goes well for the Communist Party.
(It won't.)
In the process, WTI will set a new high, probably painfully higher than people expect, and in a faster time frame that people expect, but also coming up short of moonboy expectations. I would say that this 3350/B as some have predicted is nonsense. I think the number is $180, and then demand destruction will be savagely en route.
For Natural Gas, I believe that Henry Hub futures are going to heatseek $18 after a solid clean out, and then the game will quickly wrap itself up. Look on the upside: at least you haven't been paying $40 like Europe and Australia already has for months.
All of this means that when everything is scary and prices have been driven deep enough to give you the chance to sell low after buying high, energy stocks will begin a real pump. This pump will serve as a bear trap and will be pretty amusing.
Your best bet on Suncor is in the $27 mark with a target above the double top around $62. Frankly, I would say you could see a new all time high over $80, but drawing this on this chart is too hard.
Either way with a $27 entry and a $62 target with a stop below $21, you're getting an RR of almost 5. An entry of $34.60 is more "realistic" for many people, so go for that, and just make sure you don't panic sell if terminal velocity continues on.
Make sure you sell it _all_ at the peaks and buy your family something nice. Remember: stocks won't buy you rice or gasoline. Cash. Is. King.
Now, both NG1 and WTI are going to dump as the Federal Reserve points a nuclear bomb at the so-called "inflation," which in reality are high commodities and high stock prices.
Shortly it will appear that the Party is over for commodities and stocks, and this will provide a great deal of pain for people who have bought this pullback from $53, not realizing that the knife has yet to cut sufficiently deep.
However, natural gas and oil are something that the world cannot do without, for mankind is paralyzed without electricity, and no matter how much of a leftist you want to be and how much of the ESG Kool Aid you've drank, the cold truth is that without coal and natural gas you won't have electricity for your computers, and without oil, you won't have a shipping and transportation network.
A fundamental lack of either electricity or transport would threaten the ruling North American Communist Party's stability, and so they will be maintained, but the prices will drive ordinary people out of the market, and you will see social credit and digital identification-based fuel rationing during this time period, if all goes well for the Communist Party.
(It won't.)
In the process, WTI will set a new high, probably painfully higher than people expect, and in a faster time frame that people expect, but also coming up short of moonboy expectations. I would say that this 3350/B as some have predicted is nonsense. I think the number is $180, and then demand destruction will be savagely en route.
For Natural Gas, I believe that Henry Hub futures are going to heatseek $18 after a solid clean out, and then the game will quickly wrap itself up. Look on the upside: at least you haven't been paying $40 like Europe and Australia already has for months.
All of this means that when everything is scary and prices have been driven deep enough to give you the chance to sell low after buying high, energy stocks will begin a real pump. This pump will serve as a bear trap and will be pretty amusing.
Your best bet on Suncor is in the $27 mark with a target above the double top around $62. Frankly, I would say you could see a new all time high over $80, but drawing this on this chart is too hard.
Either way with a $27 entry and a $62 target with a stop below $21, you're getting an RR of almost 5. An entry of $34.60 is more "realistic" for many people, so go for that, and just make sure you don't panic sell if terminal velocity continues on.
Make sure you sell it _all_ at the peaks and buy your family something nice. Remember: stocks won't buy you rice or gasoline. Cash. Is. King.
Note
Be extremely careful. Markets pumping because the Federal Reserve "only" hiked 75 basis points and people calling a new paradigm is _dangerous_.Largest hike since '94 and you just had two of them in two months.
Elevator down incoming.
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