Two Ways To Play: Hurricane Fade
Strengthen your portfolio in good times and bad.
One oil executive believes 50% of oil and gas production in the Gulf of Mexico could be shut in. Energy prices rose as the storm is projected to regain strength as it moves on a track toward Louisiana. The area is responsible for about 25% of all U.S. oil production and 15% of gas output.
Natural gas rose 1.7% to $8.415 per million BTUs in New York. Crude oil settled higher 1.6% to $118.11 a barrel at 2.22 PM.
From the Bull Pen: Bulls looking for a trade might see Exxon-Mobil (XOM) make a move for the $85 strike. Sell-stops can be set near $79.
From the Bear Cave: Bears can consider the "Hurricane Fade," where prices are typically artificially elevated due to the media headlines. The oil ETF (USO) at $105 could also be interesting as it would mark a 50% retracement from the July high.
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