Wednesday, January 6, 2010


Oil closed over my $82 target level and has entered in my opinion..."Rally Mode"! I see crude in the next 4 months hitting $100 per barrel. I also am suggesting 2 Canadian Natgas Trusts tonite: Pengrowth Energy Trust (PGH) & Penn West Energy Trust (PWE). Natural gas along with the crude oil sector stocks are staged to rally over the next several months, based on a colder than normal winter (in 25 years) and a global recovery. The trusts will appreciate, but will also pay a nice yield along the way; PGH 8.1% & PWE 9.6%.

I posted several charts, I've been harping for months now, that crude oil was tracking gold by a 4 month lag. To watch for a break over $82, well today's action was the trigger...I've suggested 2 oil drillers as plays on the oil sector; Transocean (RIG) back in July at $67, I see it going to $125 and recently Pride International (PDE) suggested November 30th at $31, target price $40.

The last chart is of Stillwater Mining (SWC) a Palladium mining company, which is one of the stocks entering the new Palladium/Platinum ETF coming out next week.

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