Nat Gas is not hitting the levels of volatility it did last year but we were able to hop on a quick trade and make some good money. We went short Natty G on May 17th and sold out of our position yesterday for a 17% return, or $17,000 for each $100,000 invested. Not bad for a ten day investment. Some times you do well hitting singles as you wait to hit the long ball for a home run.
As a follow up to last year's Oil Market investment, and last year's volatility in the Oil markets, the direction of the price of Oil became quite clear with the roll out of vaccinations and the opening of the economy. Investors with Pecunia Capital were well rewarded as we were able to capture the bulk of the move of this once in a lifetime opportunity to create true wealth. As of now we are out of Oil and looking at Natural Gas and the VIX, which should provide superior returns for our investors. There will be another opportunity. Who knows when.
When trading commodities like crude oil you make your major profits when you can get a jump on a major trend change. But there is never anything wrong with making a quick gain from a short-term trading range. To be able to capitalize on a trading range you must be able to recognize it early and get in and out quick because by the time the trading range is obvious to all it has a tendency to break down rather quickly.
In the past two years, Oil has gone from $75 per barrel to negative $37 and back up to around $40 per barrel, those are major trend changes where huge returns can be made and Pecunia clients were able to capture those massive returns in oil. Lately crude oil went into a tight trading range (as the bulls fought the bears) and we were able to capitalize on this and make some handsome profits. It takes patience and a quick trigger when the right investment opportunity presents itself. These trend changes and trading ranges do not last long. Diligence and watching the markets on a daily basis is the difference between spotting profitable investment opportunities or missing out on the opportunity to profit.
We recently entered into and closed out our crude oil investment for a quite satisfactory three-week gain of $557,000 (on our standard $1,000,000 investment). A superior market return in this uncertain climate.
The oil price action has been pulled by two opposing narratives. In one camp are the bulls that cite the OPEC+ cuts in the hopes that a decrease in supply will increase the price of crude. In the other camp are the bulls who see both the world awash in oil and demand destruction from the ongoing lockdowns associated with Covid-19. The resolution of these two narratives will ultimately determine the major trend change.
There will be money to be made in oil in the coming months when the trend change gets sorted out but at this time it is not quite clear. The major oil producing countries need a price far higher than $40 to maintain their fiscal solvency and avoid internal conflicts. On the other side of the equation are the US frackers who have successfully lowered their break even points such that any increase in the price of crude leads to more US production. Add to that the coming supply increases from Libya and the world has plenty of oil sloshing around. Currently in America a change in administration may hearken a change in policy towards Iran and Venezuela both potential major oil suppliers. This would further add to the supply glut if they are allowed to produce. Taken together along with an economy that may take a dump, and there is a possibility the crude markets may just collapse again like it did in the early part of 2020.
Of course, if there is a vaccine for the virus and the world can put the global pandemic behind it, the world economy could explode taking crude oil along with it. Those are the two competing stories currently.
We will continue to monitor and prepare for all possible scenario. Please contact us if you would like more information on how to get in on the upcoming profits in crude oil as well as the other markets we routinely follow. You too can easily profit from the upcoming turmoil in oil. Huge profits are made in oil during times like this, then come long periods of time when oil just drifts aimlessly profiting no one. Don’t wait and lose out contact us today.
We cashed out of our position in ROKU for a very sizable Third Derivative profit. The stock has exploded from just under $30 (our purchase price) to $250 where we made our exit.
A $100,000 investment in ROKU with Pecunia Capital has translated into a return of over $833,000. Technology stocks that are transformative in the marketplace exhibit these kinds of Third Derivate characteristics. But you have to watch them closely as the market does shift and shift rapidly.
For more information on investing with Pecunia Capital please contact us.
We have been trading Nat Gas on a short term basis and the volatility has led to many great investment opportunities. The market is not sure which way to go, unlike the oil market that has been steadily declining.
Production is up as a bubble in financing the E&P companies has led to an uneconomical focus on production at any cost (or profit). This had caused prices to collapse reaching a low not seen in twenty plus years. Look to the future where many E&P's and oil company stock prices should collapse or at the worst some of these companies will go bankrupt. And then watch as prices rise to a more normal economical price.
But the ride has been quite volatile and volatility is a great friend to a trader. Being deft with purchases and sales and utilizing time tested trading strategies, we have been able to again provide superior returns for our investors. A $100,000 investment in our Nat Gas trades has returned Over $300,000.
If you would like more information on these and other Third Derivative investment opportunities please contact us.
This month we entered into a sizable position in ROKU. We loaded the boat at a price just under $30 per share.
ROKU is a streaming TV platform that will take advantage of the current "cord cutting" previously underway. Very soon, gone will be the days of $200 cable and Direct TV bills.
Customers, especially the millennials, will be watching their content streaming over the internet, putting together their own packages of Netflix, Hulu, or just simply watching for free YouTube or online Instagram videos.
ROKU is perfectly situated to take advantage of this Third Derivative change in the marketplace. Their major competitors are the likes of Google, Amazon and Apple. Pretty stiff competition from some big scary companies that could swallow ROKU whole as a snack. But here's the thing, even with this enormous competition ROKU has the largest market share and that share is growing, even in the face of the FAANG onslaught. And that is because it is an "open platform" unlike the other offerings and no one wants to be subject to the monopoly power of the big boys.