S&P 500
2093.88
+3.78 +0.18%
Dow Indu
17850.72
+22.43 +0.13%
Nasdaq
4917.19
+15.42 +0.31%
Crude Oil
48.81
-0.67 -1.36%
Gold
1217.500
-0.985 -0.08%
Euro
1.115855
-0.002995 -0.27%
US Dollar
95.478
+0.339 +0.44%
Weak

Oil Climbs over $50: Can Investors Bank on a Recovery?

The price of a barrel of oil has almost doubled from its low of $28 at the start of the year, prompting speculation that a recovery is underway, which may result in the revival of companies in the exploration, production and services sectors that have foundered since prices collapsed in 2015.

Oil Supply Graph

According to news reports published today (Thursday, May 26), the pop above $50/bbl can be attributed to a drop in supply. The U.S. Energy Information Administration's "Summary of Weekly Petroleum Data for the Week Ending May 20, 2016" notes that "U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 4.2 million barrels from the previous week."

Since breaking the mark the price has sunk below the $50 level, but hovers in the vicinity, as it has for the past few weeks. [Read more...]

Article source: http://feedproxy.google.com/~r/theenergyreport/caoK/~3/zeVPBxSjFLI/16990

I Had To Change The Bull Head Today

Stock indexes are melting higher, which usually suggests unsustainable short covering. We took profits on long trades and moved into the short side. Hopefully, my head won't be hanging on a wall because of it, but the market internals and a correlated asset class confirms the move.

Learn more about TradingAnalysis.com here.

Plan Your Trade, and Trade Your Plan,
Todd Gordon

Two Overlooked Streaming Stocks with Huge Upside Potential

Streaming/royalty stocks have been darlings of the commodity investment world. In the precious metals sector, this type of company provides financing for mining companies in the form of an upfront cash payment in exchange for a percentage of production or revenues from the mine. Jason Hamlin of Gold Stock Bull profiles two streamers often overlooked by investors.

aur-may-13-2016-5-630

The main difference between a streaming company and royalty company is that a royalty is cash paid as a percentage of revenue, while a stream involves the actual delivery of physical metal to the holder of the streaming agreement. The finance model has also been called a volumetric production payment transaction and originated in the oil and gas sector.

Advantages of the Streaming/Royalty Model

There are considerable advantages of a streaming/royalty business model including: [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/OxNXCdfhjwA/16983

Weekly Futures Recap With Mike Seery

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Crude Oil Futures

Crude oil futures in the July contract settled last Friday in New York at 46.90 a barrel while currently trading at 48.60 up about $1.70 for the trading week continuing its remarkable bullish run over the last 3 months. At the current time, I’m sitting on the sidelines in the crude oil. I did miss this move to the upside as prices bottomed out in early January around the $32 level while now trading almost at $50 in a remarkable turn of events. However, the 10 day low is too far away, therefore, risking too much money so I will look at other markets with better risk/reward scenarios at present. Crude oil is trading far above it's 20 and 100-day moving average telling you that short-term trend is to the upside as I’m certainly not recommending any type of short position as that would be counter trend trading which is a bad idea over the course of time. It will be very interesting to see if rig counts start to increase as they had been coming down over the last year, but now prices have rallied substantially so it will be interesting to see if those corporations start pumping more oil. [Read more...]

Pro-Inflation? Anti-USD?

By: Gary Tanashian of Biiwii.com

This is the opening segment from the May 15 edition of Notes From the Rabbit Hole, NFTRH 395.  I am releasing it for public viewing because it seems, the title’s question has come roaring to the forefront this week.  So the information (including the charts) is slightly dated, but becoming intensely relevant as of now.

We anticipated an ‘inflation trade’ or Anti-USD asset market bounce and this has been going on since mid-February. That was when silver wrestled leadership from the first mover, gold (which bottomed in December and turned up in January), and a whole host of other global asset markets began to rise persistently.

gold.spx.crb.silver.eem

So why again did the US stock market react negatively to good economic data on Friday? [Read more...]

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