Foreign Energy Stocks May Be Up, But Don’t Take The Bait

Crud oil prices shot 22.6% higher in the four weeks ending March 18. That was its best four-week stretch of performance since June 2009.

Naturally, it was impossible for investors to ignore that phoenix-like rise from the ashes, as it was widely cheered in the mainstream financial media.

But after watching oil drop 15% in 10 days recently… you have to wonder: who still has the stomach to be an energy bull!?

Put yourself in their shoes…

Between April 2011 and June 2014, you watch oil prices go nowhere… losing about 1% in 38 months.

Then, you watch a “rout” chop 50% off the price of crude in six months – between June 2014 and the start of 2015.

You’re thinking: “That was rough! But surely the worst is over.”

Then, after falling to new lows in March 2015, crude rallies some 37% into May.

Suddenly, you have hope again! “The new bull market must be just beginning,” you think.

But then it tumbles again… deepening its drawdown to 60% by July… 70% in December… and 80% in February of this year.

The point is: no one’s made money being an energy bull in the last five years… but everybody wants to believe that higher energy prices are just around the corner.

I’m here to tell you: don’t bet on that just yet!

Of course, most retail investors don’t invest directly in oil.

We’re more accustomed to buying stocks than commodities. So when popular sentiment is bullish on energy commodities, like oil and natural gas, you tend to see energy-sector equity markets get a boost…

And you see an upswell in the stock markets of major energy-producing countries… like Brazil, Russia and Canada.

That story hasn’t been as prominent in the mainstream media. But my Cycle 9 Alert algorithm has picked up on the recent interest in the stock markets of these countries.