I can’t keep up with all the flip-flopping of opinions in the financial media. Markets are crashing, then they’re fine. We’re raising the debt ceiling, now we’re not.
But one consistent trend I’ve seen is in what are considered the most hated commodities out there… But just like the mainstream media doesn’t care about looking behind the scenes, markets don’t care about opinions.
It was just a week or so ago that CNBC’s Jim Cramer called for a big market correction. This week, he’s buying the dip in tech…
Source: CNBC
If you’ve been reading along here, you’ve already been doing that… And now we wait.
Instead of following all the talking heads, though, I want to draw your attention to two members of your watchlist that flashed buying opportunities Wednesday.
Source: Bloomberg
Free Trade: A Dip in the Most Hated Commodities
Although ESG conscious investors — meaning “Environmental, Social and Governance” — might hate fossil fuels, markets don’t care about optics.
And the optics of both natural gas and coal prices look like this…
Source: Bloomberg
They’ve gone complete hockey stick — straight up.
And it’s not even winter yet.
That provides an opportunity for us to sneak into both the United States Natural Gas Fund (NYSEArca: UNG) and coal producer CONSOL Energy Inc. (NYSE: CEIX) at a slight discount.
Now, the next few weeks may see these prices correct further as temperatures cool down nationwide.
As a result, DO NOT buy an entire stake… just a small amount, maybe a tenth of a position at a time. We want to wade into this over the course of a few weeks.
But this is about as good an opportunity as I’ve seen to start.
On Thursday, I’ll go into more details as to why we’re buying the most hated commodities out there.
In the meantime, though… buy (a little) on red.
All the best,
Matt Warder
Fortune Research
