Valero Needs to Volare

Even as crude oil itself endures a "sell the news" reaction off Harvey this morning, Texas-based Valero Energy in the refining segment is one of the more well-defined long ideas off the story which may be ripe to sustain a breakout. 

It is always tricky to play such obvious, national headlines like a major hurricane with flooding aftermath, as USO longs are finding out the hard way right now. 

Still, if VLO can clear $69 again, as seen on the daily chart, below, it should give longs a chance to more definitively clear resistance dating back to late-2016 as reduced refinery capacity may be the boost needed to overtake this level for good. 

Elsewhere, the GILD for KITE biotech M&A may be just what the doctor ordered for IBB and XBI bulls, as other bios across the spectrum are firming up. We have a few on watch for Members and will seek to be opportunistic in what figures to be a quasi-holiday week of trading leading up to Labor Day.