While most investors remain fixated on the tech sector and the cryptocurrency boom, energy is looking like strong bet in 2018.
Oil quietly topped $62 a barrel this week, posting new three year highs. This weeks move caps off an impressive four-month comeback that has shot crude to gains of more than 32%. Sure, the days of $100 oil are long gone. But as this furious energy rally proves, the oil age isnt dead just yet.
In fact, were seeing evidence that a raging energy bull is set to hand alert traders double-digit gains as first-quarter trading heats up.
Lets get down to business
The financial media are blaming oils recent rebound on protests in Iran and tightening inventories. While these two factors are certainly adding fuel to the energy rally, the sparks that ignited this run showed up in the market more than three months ago.
Toward the very end of the third quarter, oil topped $50 a barrel for the first time since May 2017. As oil-related stocks posted their strongest trading week of the year, we took our cue to rotate into the sector.
When the dust finally cleared, the September oil comeback had turned into the catalyst for a new energy rally.