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Take Profits as Our Energy Crisis Watchlist Crushes the Market

by | Oct 18, 2021

What a day!

Our energy stock plays on the Global Energy CrisisConsol Energy Inc. (NYSE: CEIX) and Peabody Energy Corp. (NYSE: BTU) — are up 3% and 21%, respectively, as of this writing.

Source: Bloomberg

I suspect the gigantic move in BTU was due to the company releasing preliminary Q3 results and raising guidance for earnings. Coal prices are extremely high right now — about $240 per ton — which is 321% higher than this time last year. 

We just moved it onto last week’s watchlist, when I doubled down on our coverage of the coal sector. I even laid out the story for DTI’s “Ask the Pros” segment this past Friday.

You can watch that video here.

At the end, I also announce that my “No. 1 Energy Crisis Play” report is getting ready to drop in my Fortune Research Pro service this week.

Subscriptions are on sale right now for just $7, so if you want to get in on this deep dive before anyone else, just click here…

An Update on Our Top Energy Stock Plays

Now, if you’ve been reading along these past few months and you happened to buy a little CEIX or BTU last week, you know what to do with these gains here.

Just sell a little — say, a quarter or half of your position — and buy something that’s down on the day.

That something you should consider buying is the United States Natural Gas Fund (NYSEArca: UNG), which is beginning to correct after a massive 25% rip back to about $6/mmbtu, driven by a recent short squeeze.

Source: Bloomberg

As always, buy a little at a time for this one — a tenth of any intended position or less — because mild fall temperatures may reduce power demand over the next week.

I’ll be sure and mention it in every Fortune Research piece this week.

Also, this is a good spot to sell Proshares UltraQQQ ETF (NYSEArca: TQQQ). 

The Nasdaq is up four sessions in a row, and we’re starting to see rotation out of large-cap names and into smaller ones. We’re up about 5% relative to our entry a while back, but I’d like to get off this roller coaster and into something with more upside.

Source: Bloomberg

Our stakes in Direxion Daily S&P 500 Bull 3X Shares (NYSEArca: SPXL) and iShares Russell 2000 ETF (NYSEArca: IWM) still have some room to run, though, so we’re sticking with those.

That’s it for now, though… stay tuned for Tuesday’s watchlist updates. Maybe we’ll have some more of the top energy stock plays we find.

All the best,

Matt Warder

Fortune Research

WRITTEN BY<br>Matt Warder

Matt Warder

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