Thursday, June 2, 2016

Great New Video: Two Critical Things Every Options Trader Must Know

Our trading partners at Simpler Options are back with another free webinar. This time it's "Precise Short Term Options Setups for Low Risk Profits in Volatile Markets" hosted by John Carter and Chris Belcher.

As always John and Chris have provided a free video to give you some hints as to what we will be covering....Watch that video now!

It all starts this Tuesday June 7th at 7:00 pm central.

Just visit this link to reserve your seat for this game changing webinar right now since all of these webinars get over subscribed.

Watch Todays Video and Sign Up for the Webinar Right Here

These two highly respected traders (with more than 50 years of combined experience) reveal low risk option strategies designed to catch quick explosive moves in volatile stocks. Get ready to take notes because we’re going to review results from actual live trades executed in real time during current market conditions.

Red Thumb Trades: Stop wasting time (and precious capital) on dud stocks. Discover how to find the right options to trade on the right stocks today.

Precision Exit Strategies: Finally know when to take fast profits intraday and when to let your position turn into a swing trade so you can get maximum gains.

Simple Option Setups: Cut through all the jargon and ‘Greek’ mumbo jumbo and learn how to follow a step by step process to create consistent income trading stock options.

The Ultimate Timing Secret: How to know in advance which stocks are likely to explode (in any time frame) and when to jump in with confidence

Miracle Grow Positions: Simple rapid growth strategies for small accounts. Discover why it’s possible to make a whole lot more money with options than you can with trading stocks. The key is to follow a few precise option setups.

Massive Mistakes Exposed: Learn why most traders will never be consistently profitable and discover how to actually profit from the most common (and costly) mistakes.

The Perfect Storm: Why the current volatile conditions are a trader’s paradise, and key catalysts to watch for in the coming months.

Case Study: Review one of John's live trades on TSLA that brought in $17k in 1 day (along with several other recent real money examples so you can see these setups in action).

As always, make sure you get your reserved seat now while you and make sure you log in early on Tuesday so you don't lose your spot.

Reserve Seat Right Here and Now

See you Tuesday evening,
Ray C. Parrish
aka the Crude Oil Trader

Get John's latest FREE eBook "Understanding Options"....Just Click Here!

Monday, May 30, 2016

Hundreds of Oil Stocks Could Go to Zero…Will You Still Be Owning One of Them?

By Justin Spittler

The largest shale oil bankruptcy in years just happened. If you own oil stocks, you'll want to read today's essay very closely. Because there's a good chance hundreds more oil companies will go bankrupt soon. As you probably know, the oil market is a disaster. The price of oil has plunged 75% since 2014. In February, oil hit its lowest level since 2003.

Oil crashed for a simple reason: There’s too much of it. New methods like “fracking” have led to a huge spike in global oil production. Today, oil companies pump about 1 million more barrels a day than the world uses.

Last year, America’s biggest oil companies lost $67 billion..…

To offset low prices, oil companies have slashed spending by 60% over the past two years. They’ve laid off more than 120,000 workers. They’ve sold assets and abandoned projects. Some have even cut their prized dividends.

For many oil companies, deep spending cuts weren’t enough…

The number of bankruptcies in the oil industry has skyrocketed….

Bloomberg Business reported earlier this month:
Since the start of 2015, 130 North American oil and gas producers and service companies have filed for bankruptcy owing almost $44 billion, according to law firm Haynes & Boone.
And that doesn’t even include two “big name” bankruptcies in the last couple weeks. Two weeks ago, Linn Energy filed for bankruptcy, making it the largest shale oil bankruptcy since 2014. It owes lenders $8.3 billion.

A week later, SandRidge Energy declared bankruptcy. It became the second biggest shale oil company to go bankrupt. The company owes its lenders about $4.1 billion. Ultra Petroleum, Penn Virginia, Breitburn Energy, and Halcón Resources also filed for bankruptcy in the past couple weeks.

Hundreds more oil companies could go bankrupt this year..…

The Wall Street Journal reported last week:
This year, 175 oil and gas producers around the world are in danger of declaring bankruptcy, and the situation is nearly as dire for another 160 companies, many in the U.S., according to a report from Deloitte’s energy consultants.
Defaults by oil and gas companies are already skyrocketing. The Wall Street Journal continues:
Oil and gas companies this year have defaulted on $26 billion, according to Fitch Ratings data. That figure already surpasses the total for 2015, $17.5 billion.
Fitch, one of the nation’s largest credit agencies, expects 11% of U.S. energy bonds to default this year. That would be the highest default rate for the energy sector since 1999.

Many investors thought the oil crisis was over..…

That’s because the price of oil has surged 80% since February. Dispatch readers know better. For months, we’ve been warning there would be more bankruptcies and defaults. We said many oil companies need $50 oil to make money. The price of oil hasn’t topped $50 a barrel since last July. Even after its big rally, oil still trades for about half of what it did two years ago.

Oil prices will stay low as long as there’s too much oil..…

Although the world still has too much oil, the surplus has shrunk in the past few months. In February, the global economy was oversupplied by about 1.7 million barrels a day. Thanks to U.S. production cuts, the surplus is now just 1.0 million barrels a day. The number of rigs actively looking for oil in the U.S. has dropped by 80% since October. This month, the U.S. oil rig count hit its lowest level in 70 years.

However, many other countries aren’t cutting production at all. Saudi Arabia and Russia, two of the world’s biggest oil-producing countries, are both pumping near-record amounts of oil. Frankly, these countries don’t have much choice. Oil sales account for 77% of Saudi Arabia’s economy. And oil accounts for 50% of Russia’s exports. If these countries stop pumping oil, their economies could collapse.

Low prices have made it impossible for some oil companies to pay their debts..…

U.S. oil companies borrowed nearly $200 billion between 2010 and 2014. If you’ve been reading the Dispatch, you know the Federal Reserve is mostly to blame for this. It’s held its key interest rate near zero since 2008. This made it incredibly cheap to borrow money. When oil prices were high, the debt wasn’t an issue. Companies made enough money to pay the bills. That’s no longer the case. Today, many oil companies are burning through cash to pay their debts.

To make matters worse, many weak oil companies have been cut off from the credit market..…

Before prices collapsed, oil companies could refinance their debt if they ran into trouble. This could buy them time to sort out their problems. These days, many banks will no longer lend oil companies money. Bloomberg Business reported last month:
Almost two years into the worst oil bust in a generation, lenders including JPMorgan Chase & Co., Wells Fargo & Co. and Bank of America Corp. are slashing credit lines for struggling energy companies…
Since the start of 2016 lenders have yanked $5.6 billion of credit from 36 oil and gas producers, a reduction of 12 percent, making this the most severe retreat since crude began tumbling in mid-2014.
Oil stocks are still very risky..…

But that doesn’t mean you should avoid them entirely. As we’ve said before, oil stocks have likely entered a new phase. You see, when oil prices first tanked, investors sold oil stocks indiscriminately. Both strong and weak stocks plunged. In other words, investors “threw the baby out with the bath water.” You often see this behavior during a crisis.

Exxon Mobil (XOM), the world’s biggest oil company, fell 34% since 2014. Chevron (CVX), the world’s second biggest, dropped 48%. Now that oil has stabilized, the stronger companies are separating themselves from the weaker companies. This year, Exxon is up 15%. Chevron is up 11%. The crash in oil prices has given us a chance to buy world class oil companies at deep bargains.

If you want to own oil stocks, stick with the best companies..…

If you're going to invest in the sector, there are four key things to look for: 

Make sure you buy companies that can 1) make money at low oil prices. You should also look for companies with 2) healthy margins 3) plenty of cash and 4) little debt.

In March, Crisis Investing editor Nick Giambruno recommended a company that hits all of these checkmarks. It has a rock-solid balance sheet…some of the industry’s best profit margins…and “trophy assets” in America’s richest oil regions. It can even make money with oil as cheap as $35.

The stock is up 9% in two months. But Nick thinks it could just be getting started. After all, it’s still 30% below its 2014 high. You can get in on Nick’s oil pick by signing up for Crisis Investing. If interested, we encourage you to watch this short presentation. It explains how you can access Nick’s top investing ideas for $1,000 off our regular price.

This incredible deal ends soon. Click here to take advantage while you can.

You’ll also learn about an even bigger “crisis investing” opportunity on Nick’s radar. This coming crisis could radically change the financial future of every American. By watching this video, you’ll learn how to profit from it. Click here to watch.

Chart of the Day

Oil and gas companies are losing billions of dollars, we’re in earnings season right now. This is when companies tell investors if their earnings grew or shrunk last quarter. A good earnings season can send stocks higher. A bad one can drag stocks down.

As of Friday, 95% of the companies in the S&P 500 had shared first quarter results. Based on these results, the S&P 500 is on track to post a 6.8% decline in earnings. That would be the biggest drop in quarterly earnings since the 2009 financial crisis.

Oil and gas companies are a big reason U.S. stocks are having such a horrible earnings season.

As you can see below, first-quarter earnings for energy companies in the S&P 500 have plunged 107% since last year. Keep in mind, this group includes Exxon, Chevron, and other blue chip energy stocks.

Again, if you’re looking to buy oil stocks, make sure you “look under the company’s hood” before you buy it. Steer clear of companies that are losing money and have a lot of debt.

Get our latest FREE eBook "Understanding Options"....Just Click Here!

Wednesday, May 18, 2016

Do You Own the Next Enron?

By Justin Spittler

Companies are hiding more from you than you realize. Back in the late 90s, energy company Enron was a Wall Street darling. From 1998 to 2000, its stock surged 342%. It became America’s seventh biggest corporation…but the company was a farce. Management used shady accounting to inflate its sales and profits. When the fraud came to light, Enron’s stock plummeted. In 2001, it filed for bankruptcy.

In April, former Enron CEO Andy Fastow issued a serious warning…..
Fastow was one of the main actors in the Enron scandal. He spent six years in jail for his crimes. According to Fastow, many corporate executives are now doing what he did at Enron. He even accused tech giant Apple (AAPL) of misleading investors. Business Insider reported:
His point – an entirely correct one – is that the world’s largest company today is engaged in tax dodging behavior that, while perhaps technically legal, is clearly designed to increase profits and inflate the stock by misleading and confusing regulators (and perhaps investors) via a massively complex web of entities – exactly what he did at Enron! And this is 100% routine, common behavior among most large US companies.
Some people might find Fastow’s claim ridiculous. He is a convicted felon, after all. But Casey readers know better than to trust Corporate America.

Regulators have accused Valeant (VRX) and SunEdison (SUNE) of similar crimes..…
You’ve probably heard about the drug maker Valeant and the renewable energy company SunEdison. Their downfalls have been two of the year’s biggest investing stories. Like Enron, both companies were hot investments. From January 2013 to July 2015, Valeant gained 332%. SunEdison’s stock surged 892% over the same period.

Like Enron, both companies used “creative accounting.” According to The Wall Street Journal, the Securities and Exchange Commission (SEC) is investigating whether “SunEdison misrepresented its cash position to investors as its stock collapsed.” Valeant is under investigation for its pricing and accounting practices. And like Enron, both stocks have crashed. SunEdison plunged 99% before it announced plans to file bankruptcy. Valeant’s stock has plummeted 89%.

The mainstream media paints Valeant and SunEdison as a couple “bad apples”…
According to most reports, it’s rare for public companies to pull tricks on investors. But if you’ve been reading the Dispatch, you know that’s not true. For the past few months, we’ve been telling you about the huge surge in share buybacks. A share buyback is when a company buys its own stock from shareholders.

Buybacks reduce the number of shares that trade on the market. This boosts a company’s earnings per share, which can lead to a higher stock price. But buybacks do not actually improve the business. They just make it look better “on paper.” According to research firm FactSet, 76% of the companies in the S&P 500 bought back their own shares between November and January. Most companies used debt to pay for these buybacks. The Wall Street Journal reported last week:
The biggest 1,500 nonfinancial companies in the U.S. increased their net debt by $409 billion in the year to the end of March, according to Société Générale, using almost all—$388 billion—to buy their own shares, net of newly issued stock. Companies have become far and away the biggest customer for their own shares.
Companies are also using “financial engineering” to make their businesses appear healthier…
Financial engineering is when companies use accounting tricks to goose their sales, profits, or cash on the balance sheet. It’s how Enron, Valeant, and SunEdison hid problems from investors. Many other companies are doing similar things.

As you may know, U.S. corporations are required to report “GAAP” earnings per share. GAAP based earnings comply with accepted accounting guidelines. A growing number of companies are also reporting “adjusted” earnings that do not comply with GAAP. Many companies use adjusted earnings to strip out “temporary” factors like the strong dollar or a warm winter. Management decides what to leave out and include when measuring adjusted earnings.

Two-thirds of the companies in the Dow Jones Industrial Average report adjusted earnings…
In 2014, adjusted earnings were 12% better than GAAP earnings. Last year, they were 31% better. Companies say adjusted earnings give a more complete picture of their business. But it’s becoming obvious that companies are using non-GAAP earnings to hide weaknesses.

As Dispatch readers know, the U.S. is in its weakest “recovery” since World War II. Europe, Japan, and China are all growing at their slowest pace in decades too. With the economy so weak, many companies have had to “get creative” to grow earnings.

Sales for companies in the S&P 500 have fallen four straight quarters..…
Earnings are on track to decline a fourth straight quarter. That hasn’t happened since the 2008-2009 financial crisis. These results would be even uglier if companies didn’t report adjusted earnings.

You see, it’s much easier for companies to mask weak sales or profits when the economy is growing. When the economy slows, those problems become too big to hide. Right now, the global economy is clearly slowing. So expect to hear about more “Enrons” in the coming months.

The stock market is a dangerous place to put your money right now..…
If you're going to invest in stocks, keep three important things in mind. You should avoid investing in businesses you don’t understand. Many hedge funds wish they had followed this advice with Valeant and SunEdison. Despite these companies’ complex and unclear business models, some of the largest hedge funds in the world invested in them. This earned Valeant and SunEdison the nickname “hedge fund hotels.” We also encourage you to avoid companies with a lot of debt. These firms will struggle to pay the bills as the economy worsens.

Finally, we recommend you steer clear of companies that need buybacks to increase earnings. Buybacks can give stocks a temporary boost, but they’re no way to grow a business. In short, money spent on buybacks is money not spent on new machinery, equipment, or anything else that can help a company grow. It’s especially a poor use of cash when stocks are expensive…like they are today.

We encourage you to set aside cash and own physical gold..…
A cash reserve will help you avoid big losses during the next big selloff. It will also put you in a position to buy world-class businesses for cheap after the “rotten apples” are exposed. Physical gold is another proven way to defend your wealth. Gold has served as real money for centuries because it has a rare set of qualities: It’s durable, transportable, easily divisible, has intrinsic value, and is consistent across the world.

It’s also protected wealth through the worst financial crises in history. Investors buy it when they’re nervous about stocks or the economy. This year, gold is up 22%. It’s at its highest level since January 2015. For other proven strategies to protect your money from a stock market crash, watch this short video. In it, you’ll learn how to fully “crisis proof” your wealth. Click here to view this free presentation.

Chart of the Day

The U.S. stock market is wobbling on one leg. Dispatch readers know buybacks have been a major driver of U.S. stocks. Since 2009, S&P 500 companies have shelled out more than $2 trillion on buybacks. As noted, buybacks can make earnings look better “on paper.” They can also prop up share prices. With the economy slowing and earnings in decline, buybacks have been one of the things keeping stocks afloat…but even that’s starting to give way.

Today’s chart compares the performance of PowerShares Buyback Achievers Fund (PKW) this year versus the S&P 500. PKW tracks companies that bought back more than 5% of their shares over the past year. Holdings include McDonald's (MCD), Lowes (LOWE), and Macy’s (M).

From March 2009 to May 2015, PKW gained 314%. The S&P 500 rose 215% over the same period. Since then, PKW has fallen 10%. The S&P 500 is down 3%. Investors appear to be losing confidence in companies that buy a lot of their own stock. That’s a big problem for the stock market, which is showing major signs of weakness.

The article Do You Own the Next Enron? was originally published at

Get our latest FREE eBook "Understanding Options"....Just Click Here!

Stock & ETF Trading Signals

Tuesday, April 12, 2016

Why Are Traders Hiding Their Cash in Their Microwaves?

People in Sweden are pulling cash out of the bank and hiding it in their microwaves. It sounds crazy, but when you hear why they're doing it, you'll instantly see why this could be the beginning of a massive wave of "gold mania."

And why there's 1 thing you can do tomorrow morning that could give you a quick 40% gain -- without making any trades or buying any precious metals.

Have a look.....

See you in the markets,
Ray's Stock World

P.S. Banks in Sweden, France, England and Japan have already started. When banks in Canada and the U.S. jump on board, that's when things will really get ugly.....Full Story Here

Wednesday, March 30, 2016

What the Current Gold Analysis is Telling Us About this Short Term Top

Last night as I was going over my charts and running my end of the day analysis the charts jumped out at me with a trade setup and wanted to share my cycle chart for gold with you. The price chart of gold below is exactly what my cycle analysis told us to look for last week WELL ahead of the today’s news and its things play out I as I feel they will then we stand to make some pretty good money as gold falls in value during the month of April.

If you have been following my work for any length of time then you know big price movements in the market like today (Tuesday, March 29th) based around the FED news ARE NOT and SHOULD NOT be of any surprise. In fact, this charts told use about today’s pop 2 weeks ago and we have been waiting for it ever since. The news is simply the best way to get the masses on board with market moves and gets them on the wrong side of the market before it makes a big move in the other direction, most times… not always, though.

Take a look at this chart below. You’ll see two cycle indicators, one pink and one blue. The pink cycle line is a cluster of various cycles blended together which allows us to view the overall market trend of biased looking forward 5 – 30 days. The blue cycle line is a cluster of much shorter time frame cycles in this tells us when we should expect strong moves in the same direction of the pink cycles or counter trend pullbacks within the trend.

One quick point to note with cycle trading is that the height and depth of the cycle does not mean the price will rise or fall to those levels, it simply tells us if the market has an upward or downward bias. The current cycle analysis for gold along with the current price is telling us that today the short term cycle topped which is the blue line and our main trend cycle is already heading lower. The odds favor gold should roll over and make new multi-month Lows in August.

In short, we have been waiting for gold to have a technical breakdown and to retrace back up into a short term overbought condition. Today Tuesday, March 29 it looks as though we finally have the setup. Over the next 5 to 15 days I expect gold to drop along with silver and gold stocks. There are many ways to play this through inverse exchange traded funds or short selling gold, silver or gold stocks.

This year and 2017 I believe are going to be incredible years for both traders and investors. If treated correctly, it can be a life changing experience financially for some individuals. Join my pre-market video newsletter and start your day with a hot cup of coffee and my market forecast video.

Sign up right here > www.The Gold & Oil

Chris Vermeulen

Stock & ETF Trading Signals

Thursday, March 24, 2016

Bursting the Biggest Myths in Trading - Don Kaufman's Next Webinar

Our trading partner Don Kaufman is treating us to a free trading webinar this Tuesday evening March 29th at 8 p.m. est. Don't put off reserving your spot since Don and his team are only opening up this up for 1,000 traders.

Reserve Your Spot Here

During this free webinar Don will cover....
  • How you can give yourself the gift of time without paying extra so you can give your trade as much time as it needs
  • How you can create a trade with zero exposure to volatility so you never have to worry about volatility again 
  • How you can set your limited risk before you put on the trade so you know exactly what you're risking. Making this strategy the safest way to trade. So much for the myth that options are risky.
  • How you can generate big returns from small moves in a stock
  • How you can use this strategy whether you have a $2,000 account or a 6 figure account
There will be a waiting list of traders for this free class so make sure you log in 10 minutes early so you don't lose your spot.

Click Here to Get Your Reserved Seat

See you Tuesday night!
Ray's Stock World

Don Kaufman

Sunday, March 20, 2016

Four Trading Strategies That Work

If you have been following us this year you already know that our trading partner Chris Vermeulen has been spot on in 2016 and has helped our readers make profitable trade after profitable trade this year. We have followed and worked with many traders over the years so we know what trading information is useful and what is just junk information.

Chris' connects with most readers through his complimentary stock trading and education newsletter which includes simple trading strategies to use with stocks, options, futures or forex.

Get Chris' newsletter "The Four Trading Strategies That Work" right HERE!

We hope you enjoy the free content and learning from some new tips and tricks for your own trading toolbox. To further add value Chris has put together a way for you to learn some of his trading strategies which cover stocks, options, futures and forex.

Bookmark this link since you can only select one free trading strategy at a time when you optin to the form on this special webpage below. But I should note, if you want a second or third strategy you just need to revisit the optin page, optin, and select another strategy.

These strategies are only available for a couple days then Chris takes them down so click the link below and optin to be presented with the four trading strategies.

Click here to get the free "Four Trading Strategies That Work"

See you in the markets.
Ray's Stock World

Stock & ETF Trading Signals

Friday, March 4, 2016

The Secret Behind the $1 Million Option Setup....Here’s Your Private Replay (expires soon)

If you missed John Carter’s special training Tuesday night then you are in luck. The limited replay is online now.

Watch the Private Replay Here [Expires soon] 

Get ready to take notes! Unfortunately, I have no idea how long this replay will be up, so watch it while you can. But I can tell you the feedback from those who attended live is beyond awesome. This was not just another ‘webinar’ featuring ‘hypothetical results’.

John detailed, step by step, how to be consistently profitable in these volatile conditions using just a handful of very simple options setups. There was ZERO hype and total transparency. He showed actual trading accounts with winning AND losing trades for all to see. You gotta see this for yourself.

Here’s just some of what John revealed....

  •   Why extreme volatility is the new normal. If you don’t want to crash and burn, you MUST adapt
  •   The setup John used to turn $3k into $119k in just 3 weeks (and how to spot these rare, explosive moves)
  • The simple signal that allowed John to make $1 million in a single day on TSLA options
  • How to pinpoint major reversals in advance by legally ‘spying’ on Wall Street Insiders
  • The publically available intel that allowed John to catch the Nasdaq’s historic January collapse, AND then get long for the February rally
  • The braindead simple option system that turns crazy market volatility into potentially giant gains (sometimes literally overnight , with strictly limited risk)
  • How it’s possible to consistently pull in $100 to $1000 a day by trading from your smart phone (even if you have a job)

Like I said, you don’t want to miss this training. John’s refined these simple strategies over more than 25 years. He shows you what’s really working now and the account killing mistakes that you want to avoid like the plague.

Watch the Limited Replay Now

See you in the markets!
Ray's Stock World

Get John's latest FREE eBook "Understanding Options"....Just Click Here!

Will Your Favorite Oil Company Go Bankrupt?

By Justin Spittler

Oil companies are getting desperate. If you’ve been reading the Dispatch, you know oil is in a horrible bear market. The price of oil has crashed 69% since June 2014. Last month, oil hit its lowest price since 2003.

The world has too much oil..…
For years, many folks thought the world was running out of oil. The price of oil soared more than 1,200% from 1998 to 2008. The “Peak Oil” crowd saw this as proof that oil production was in terminal decline. They were very wrong. “Peak Oil” believers failed to understand that high prices would create huge incentives to develop new ways to produce oil. Oil companies developed new methods like “fracking” to unlock billions of barrels of oil that were once impossible to reach. U.S. oil production has nearly doubled over the last decade. Last year, it hit its highest level since the 1970s. World oil production levels are also near record highs.

The world isn’t consuming oil fast enough..…
The global economy produces about 1.7 million more barrels a day than it needs. With U.S. oil reserves at their highest level since the Great Depression, companies are running out of places to store the extra oil. To deal with the surplus, companies have started storing oil on tankers floating at sea and in empty railcars. Other companies are selling barrels at huge discounts just to get rid of them.

Low oil prices have hammered major oil companies..…
The world’s five biggest oil companies—Exxon (XOM), Chevron (CVX), Total S.A. (TOT), BP (BP), and Royal Dutch Shell (RDS.A)—have fallen an average 34% since June 2014. Oil services companies, which supply “picks and shovels” to the oil industry, have crashed, too. Schlumberger (SLB), the world’s largest oil services company, has plunged 36% since 2014. Halliburton (HAL), the world’s second biggest, has plunged 53%.

Oil companies have cut spending to the bone..…
Companies have walked away from billion dollar projects. They’ve sold pieces of their businesses. As Dispatch readers know, some have even cut their prized dividends. The industry has laid off more than 250,000 workers since oil prices peaked. Last year, oil and gas companies cut spending by 22%. Reuters reports that the industry could cut spending another 12% this year.

On Thursday, Halliburton laid off 5,000 workers..…
It’s now laid off 29,000 workers, more than a quarter of its workforce, since 2014. Like most companies in the oil business, Halliburton is struggling. Its sales have fallen four straight quarters. Last year, the company lost $671 million, its first annual loss since 2004. The latest round of layoffs suggests Halliburton doesn’t expect business to pick up anytime soon.

The oil market is cyclical..…
It goes through big booms and busts. Right now, it’s going through its worst bust in decades. Eventually, the oil market will boom again. After all, the world needs oil. Companies that survive this bust should deliver huge gains during the next boom. If you can buy great oil companies near the bottom, you could set yourself up for huge gains when the next boom comes. So…is this the bottom?

According to The Wall Street Journal, one third of U.S. oil producers could go bankrupt this year. To be profitable, many companies would need the price of oil to get back up $50. With oil at $32.84 a barrel on Friday, those companies are in trouble. We expect a wave of bankruptcies to rip across the oil industry. This would likely trigger another leg down in oil stocks. So we’re not ready to buy oil stocks yet.

Instead, we recommend “stalking” your favorite oil companies..…
Nick Giambruno, editor of Crisis Investing, just added a world-class oil company to his watch list.
If you don’t know Nick, his specialty is buying beaten-down assets during a crisis. Most investors run away from crisis. But if you can keep your head and buy when everyone else is panicking, you can often pick up a dollar’s worth of assets for a dime or less.

Shale oil stocks are in crisis today. Even the largest shale companies have been obliterated. Major shale oil producer Apache (APA) has plunged 51% since June 2014. Anadarko (APC), another larger shale company, has plummeted 65%. Shale oil is more expensive to extract than conventional oil. And at today’s prices, most shale oil projects can’t make money.

Many shale companies borrowed too much money during oil’s boom times. Now that oil is in a bust, they can’t generate the cash flow to pay back their debts. Last month, investment bank Oppenheimer & Co. Inc. warned that half of all U.S. shale oil producers could go bankrupt before oil prices recover. To survive, these companies would need the price of oil to more than double.

Nick has found a shale company unaffected by these problems. It’s a world-class shale oil company that has virtually no risk of going bankrupt. However, its stock has gotten extremely cheap along with all other shale oil stocks. Nick says this company has “trophy assets in the major U.S. shale basins. It has a solid balance sheet.

And, unlike many of its peers, it didn’t over leverage itself during the last boom.” The company also has the industry’s highest profit margins. Nick plans to buy this company at once in a generation prices. He will tell Crisis Investing readers when it’s time to pull the trigger.

In the meantime, Nick is investing in Cuba..…
As you may know, the U.S. has had a trade embargo against Cuba since 1962. The embargo bans all trade, making it illegal for Americans to invest in Cuba. But that could soon change. About a year ago, Cuba and the U.S. announced they were working to repair diplomatic and economic relations. In August, the two countries reopened their embassies in each other’s capitals. President Obama is going to Cuba next month. He will be the first sitting president to visit Cuba since Calvin Coolidge in 1928.

Nick thinks the embargo could soon “become a page in the history books”..…
The end of the embargo will create the “potential for enormous profits,” as Nick explained in Crisis Investing.
When the embargo goes away, American tourism to Cuba will explode. The International Monetary Fund estimates there could be up to 10 million visits from Americans every year as soon as the embargo comes down.
Today, it’s still illegal to invest in Cuba. But Nick has a “back door” way to profit from the opening up of Cuba’s economy. Nick’s investment in Cuba legally trades on the NASDAQ stock exchange. It should deliver huge gains when the embargo is lifted…which may happen very soon. You can get in on Nick’s Cuba investment by signing up for Crisis Investing. You’ll also learn about the world class shale oil company on Nick’s watch list. Click here to begin your risk-free trial.

Chart of the Day

Shale oil stocks have been decimated. Today’s chart shows the performance of the Market Vectors Unconventional Oil & Gas ETF (FRAK). This fund tracks 50 companies involved in the shale oil and gas industries. FRAK has crashed 65% since June 2014. Last month, it hit an all-time low. As we mentioned, most shale oil companies simply can’t make money right now.

The article Will Your Favorite Oil Company Go Bankrupt? was originally published at

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Stock & ETF Trading Signals

Tuesday, March 1, 2016

Tonights Free Webinar: How to Spot Big Market Reversals in Advance and Beat Wall Street Silly

Thinking about living a ‘dream lifestyle’ is tough for a lot of traders right now, because they’re getting their faces ripped off. And there’s no doubt, these conditions are some of the craziest that we’ve ever seen. Stocks were down 9% in January, that’s the worst market performance in history.

Predictably, some expected the world to end and loaded up on the short side. Of course, then the market reversed in February and is already up 1.4%. Take a look at the Nasdaq roller coaster that traders just rode for nasty losses or pretty awesome gains.

Nasdaq Daily

It’s clear that the bulls got destroyed in January, and then bears gave back all of their profits and then some in February. In other words, both sides got creamed. Classic Wall Street shenanigans, right? In case you were wondering, the markets are designed to deliver maximum pain to the most traders possible. How would you like to turn the tables and finally beat those guys at their own game?

Well, on Tuesday, March 1st at 7pm Central, John Carter is going to show you why his account is up 48% already this year.

For starters, he’ll show you the signal that told him to get short the NQ on the way down, and then buy for the ride back up. As you can imagine, spotting those kinds of reversals in advance would give you an almost unfair advantage. Well, it’s easier than you think and you don’t have to be a psychic. What John is doing isn’t magic. He is just trading simple setups that have passed the test of time.

If you’re getting your clock cleaned by this volatility, we can all relate. It took John years to figure this stuff out. If you join him this Tuesday, March 1st at 7 pm Central, he’ll show you how to use a simple indicator to spot major reversals and piggyback your trades on what the biggest Wall Street institutions are doing. He’ll cover that and a whole lot more.

And let’s take advantage of this "once in a decade" volatility. The next twelve months could offer the best opportunity to rapidly grow your accounts since the 2008 crash. Don’t buy into the myth that volatility automatically means high risk. John will show you how to strictly manage risk and still position your account for major gains.

Put this special webinar on your calendar....Sign Up Right Here!

See you Tuesday.
Ray's Stock World

P.S.   John gave us a video primer earlier in the week......Watch That Here

Get John's latest FREE eBook "Understanding Options"....Just Click Here!

Stock & ETF Trading Signals