01Jun10:26 amEST

They Usually Ride the Wave

Just as the most recent energy bear market, beginning roughly in late-2014 and essentially lasting for the rest of the decade, adversely affected maritime transportation stocks relating to oil tankers and the shipping of crude oil, liquefied natural gas and liquefied petroleum gas, so too can a bull market see the tanker suddenly come to life. 

Stocks like FRO NAT STNG TOPS, and TK, below on its monthly chart, pretty much have similar patterns of being long out of favor with investors and long-oriented traders alike for years on end. These issues, essentially, have functioned as the anti-softwares, in many respects. 

But as the tide continues to turn in favor of oil and many commodities, tankers and shipping are threatening to ride the new bullish wave as we see tech and growth stocks lag, yet again, coming off the holiday weekend this morning. Should that theme continue, I expect this group to perk up in a major way, since they tend to be high beta movers when they occasionally find themselves in favor. You might also look at refining stocks in the same light. 

So while the likes of AMC and GME understandable garner attention, as does crypto, this move in oil and oil stocks is not something to take lightly (on many fronts, of course, including inflation concerns). And that means sectors on the periphery like shippers, tankers, refiners, uranium, etc., continue to present intriguing long opportunities. 

Memorial Day Tribute Commodity Stocks Are Rallyin...


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