Micro Energy Trader

Two sells today, for very different reasons.

First, sell the remainder of your position in VelocityShares 3x Long Crude Oil ETN (UWTI) at market. This "bull" exchange-traded note has been doing very well for the Micro Energy Trader Portfolio: we sold 50% of the position on April 22 for a 98.75% gain.

As of 1 PM Eastern time today, UWTI now stands at a 130% gain since introduction two months ago. Sell the remainder of your position and book a very nice triple-digit profit. Congratulations on another nice return! Let me know how you did on this one by clicking here.

Now I believe UWTI will be rising again after a consolidation, albeit at a slower rate given the underlying oil pricing advance. But I also think the current rise is just about over.

We will shortly experience another rise in surplus volume in the U.S. market (an inevitability following the strong crude oil pricing rise over the past two weeks), while the wildfires in Western Canada are coming under control. Both will signal resistance to further short-term oil pricing gains.

Remember, UWTI magnifies the underlying crude oil price by a factor of 3. When that price is rising, we make a nice return. Yet that will reverse as soon as resistance to further advances kick in.

It's best to take the profits off the table now and come back in later for another ride up.

The second sale today is CUI Global Inc. (CUI). We introduced the stock on February 25 but it never gained traction, and today it triggered its trailing stop. Had you been following our approach, you are already out of the position. If not sell now.

 
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Categories:    Micro Energy Trader

As Marina and I wind up our visit to Abu Dhabi, there are two moves I want you to make this morning.

The first involves the Magnum Hunter Resources (OTC: MHRC) January 2017 $5 puts (MHRC170120P00005000), acquired back in March. Magnum Hunter is an oil/natural gas operator that has been squeezed in the current low-price climate. Its market cap has fallen to less than $12 million by close on Friday.

 
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Categories:    Micro Energy Trader

The ongoing narrow range in crude prices has provided another opportunity to move on specific oil tanker holding approaches. The object here is not a primary move on the transport of oil but on its storage.

Tankers have become a preferred way of storing oil already out of the ground in advance of transit. This is especially the case in those areas of the world where exporting countries remain dependent upon revenues from international oil sales.

While oil storage remains an expensive proposition, it is still much more cost efficient to find affordable storage and keep field production operations moving, even at a reduced outflow, rather than closing wells and face the uncertainty of starting them up again later.   

 
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Categories:    Micro Energy Trader
Oct
06
2015

Buy HQCL

I'm on the road again today, but I wanted to send you this alert recommending that you purchase shares of Hanwha Q Cells Co. Ltd. (NasdaqGS:HQCL) immediately.

Hanwha is a South Korean-based global provider of next generation solar technology. Its Q.ANTUM modules were recently (mid-September) voted No. 1 in the world.

 
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Categories:    Micro Energy Trader

I am currently traveling between meetings at several locations in Europe. That means I am writing this alert early in the morning local time (1:30 AM last time I looked), meaning that this alert is going to be direct and to the point.

Erin Energy Corp. (NYSE MKT:ERN), the former CAMAC Energy now trading on both the NYSE MKT and Johannesburg (South Africa) stock exchanges, is poised to move again.

 
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Categories:    Micro Energy Trader

On July 29, I recommended that you set a sale of the Triangle Petroleum Corp. (NYSE MKT:TPLM) January 2016 $2.50 puts (TPLM160115P00002500) at $0.35 (thirty-five cents), or $35 for a contract on 100 underlying shares. This had become the ask price on that date and comprised a net profit of 133% for a put we had only purchased two weeks previously (on July 15).

Yesterday, that $0.35 became the value of the last recorded sale (with the ask extending to $0.40). If you had locked in an automatic sale order with your broker, you should already be reaping the benefit of a nice (and quick) turnaround. If you did not, do so this morning.

And congratulations on a hefty gain. Write in and let me know how you did on this one.

 
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Categories:    Micro Energy Trader
Jul
27
2015

Sell CCLP

The downward pressure on oil prices and persistent natural gas prices below $3 per 1,000 cubic feet has continued to weigh on related stocks. The result has been a decrease the value of what had been well-performing stocks in the Portfolio.

CSI Compressco LP (NasdaqGS:CCLP) triggered its trailing stop during trade on Friday. If you have been following our approach, you are already out of the position. If not, sell this morning.

CCLP carries a 13.1% annualized dividend and had been strong until recently. As a result, the trigger Friday amounted to less than a 4% overall loss on the stock, Remember, the trailing stop dictates a sale if a share declines 30% from its highest value while held.

 
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Categories:    Micro Energy Trader
Jul
23
2015

Move on DHT

The resurgence in the oil and oil product tanker segment continues as better combinations of contract and spot hauling prices improves the bottom line.

In addition, there are some new developments here that are likely to increase profitability. In addition to the use of older tankers as stationary offshore depots for the holding of onshore production and offloading to larger deep sea tanker traffic, other advances are underway.

Primary here involves the FPSO/FSO market. FPSO stands for Floating Production, Storage and Offtake, while FSO refers to Floating Storage and Offtake. This is quietly becoming a major ingredient in the liquefied natural gas (LNG) market.

 
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Categories:    Micro Energy Trader