Two major conflicts keep oil prices elevated. Brian Sullivan heard this from energy insiders. Energy insiders talk to financial journalists when they want retail traders to buy their bags at the top. Works every time.
Sullivan runs a show where he tells you what energy insiders are saying. Energy insiders never say sell. They say names like Chevron and ConocoPhillips. They say geopolitical risk premium. They say structural supply constraints. What they mean is please god someone buy these shares before earnings.
The headline promises the best energy stocks right now. Right now is doing a lot of work in that sentence. Right now means the conflicts are happening right now. Right now means oil prices are elevated right now. Right now means you should buy right now before you miss out on being down 30% in three months.
Conflicts keep prices elevated until they don't. Then Sullivan books a different insider who explains why energy stocks are still a buy at lower prices. The insider has a different thesis. The thesis is always bullish. Bearish insiders don't get booked on financial television because telling people not to buy things is considered rude.
Technical analysis says none of this matters. Oil tested resistance at $85 in April. Failed. Retested in May. Failed again. Drew a nice double top. Energy stocks topped two weeks before oil did because energy stocks always lead oil except when they don't. Sullivan's insiders didn't mention that part.
Retail traders will buy energy stocks after watching the segment. They'll buy Occidental because Buffett owns it. They'll buy Exxon because it's Exxon. They'll check the price in six weeks and wonder why Brian Sullivan's energy insiders aren't returning their calls.
The insiders are busy. They're talking to Sullivan about the next best sector right now.
Photo by Maksym Kaharlytskyi on Unsplash
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