TTP Premium Members Were Presented With This Opportunity In The Hot Energy Sector As An Alternative To Single Stock Exposure.
TTP Spotlight Stock: GUSH
OVERVIEW: Commodity stocks look poised to perhaps take a leadership role heading into next year as the price of crude oil has stayed steady in the mid to upper $50 range after bottoming out in early 2016. Many stocks have made early transitional moves already, while some have broken out at this point. We have exposure currently in the TTP portfolio via PSX and most recently SND but there are still some plays top come if this energy trend continues. One way to play the energy sector move, if you don’t want single stock exposure, is a leveraged ETF and we will look at one of these today, GUSH.
GUSH- This is a 3x leveraged ETF sponsored by Direxion that tracks the Oil and Gas Exploration sector. The ETF started a rapid recovery phase off a bottom when the calendar turned to September that saw the ETF increase nearly 100% by early November. The ETF went into a seven week basing period and is popping its head above resistance this week in a breakout attempt. When gauging legitimate breakouts, its always tough when stocks make these moves in a holiday trading period due to lighter trading volumes. However as a trader, you will come to expect to have to look through murky waters most of the time and make a decision. There is plenty of over head supply going back to the 2016-2017 period, but there is still room for advance should oil market remain bullish. Here is a look at both a weekly and daily chart.