{"id":16708,"date":"2020-10-28T07:30:25","date_gmt":"2020-10-28T11:30:25","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=16708"},"modified":"2020-10-28T07:30:25","modified_gmt":"2020-10-28T11:30:25","slug":"heads-you-win-tails-you-win","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/heads-you-win-tails-you-win\/","title":{"rendered":"Heads You Win, Tails You Win"},"content":{"rendered":"<p>No matter what happens on November 3, energy stocks are set to move higher.<\/p>\n<p>That&rsquo;s a contrarian view, for sure. Almost nobody likes &ldquo;big oil&rdquo; right now.<\/p>\n<p>The popular thought is that a Biden victory is bad for the energy sector. But a Trump re-election would be good.<\/p>\n<p>And, the stock market is currently discounting a Biden victory. That&rsquo;s why oil and gas stocks have been drifting lower nearly every single day. It&rsquo;s also why renewable energy stocks &ndash; anything in the solar energy sector &ndash; have been rocketing higher.<\/p>\n<p>At this point, though, conditions have gotten a little stretched. The Invesco Solar Fund (TAN) is up about 130% from where it started the year. Meanwhile, the Energy Select Sector Fund (XLE) is down about 50% for 2020.<\/p>\n<p>Keep in mind, though, the stock market discounts expectations. In other words, investors act on whatever they believe will be the expected outcome before an event actually happens.<\/p>\n<p>Investors are adjusting their portfolios by dumping oil and gas stocks (and apparently, buying solar energy stocks) right now in anticipation of a Biden victory.<\/p>\n<p>By the time the election rolls around, anyone who was inclined to sell oil and gas stocks would have already done so. There won&rsquo;t be any sellers left.<\/p>\n<table bgcolor=\"#eeeeee\" border=\"0\" cellpadding=\"10\" cellspacing=\"0\" width=\"100%\" style=\"border: 1px solid #D7D7D7; margin-bottom:20px;\">\n<tbody>\n<tr>\n<td style=\"padding-left: 15px;padding-right: 15px; padding-top: 10px; font-family: Arial,sans-serif;font-size:17px; line-height:24px;\">\n<p align=\"center\" style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; margin-bottom: 20px; font-size: 18px;\"><strong>Free Trading Resources<\/strong><\/p>\n<p>Have you checked out Jeff&#8217;s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just <a href=\"https:\/\/www.jeffclarktrader.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Even if Mr. Biden wins the presidency, oil and gas stocks are likely to bounce &ndash; just because there won&rsquo;t be anyone left to sell &ndash; and the realization that it&rsquo;ll be years before we see any meaningful change in energy policy begins to settle in.<\/p>\n<p>And, if Mr. Trump returns to office&hellip; well&hellip; we could see a mind-blowing rally in the energy sector.<\/p>\n<p>So, no matter what happens on November 3&hellip; it&rsquo;s heads we rally, and tails we rally. And, the market should soon start discounting that event.<\/p>\n<p>Traders should take advantage by buying some exposure to the energy sector prior to Election Day.<\/p>\n<p>Best regards and good trading,<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\" width=\"200\" style=\"max-width:200px; width:100%;\" \/><\/p>\n<p>Jeff Clark<\/p>\n<p><strong>P.S. <\/strong>Nowadays, computers are dominating the stock market and calculating the best time to buy or sell. Even <em>Time<\/em> magazine wrote, &ldquo;Machines are Taking Over the World&rsquo;s Stock Markets.&rdquo;<\/p>\n<p>But, I&rsquo;ve discovered a way to reverse engineer what the computers are doing to give you a chance to get ahead of market moves&hellip; <a href=\"https:\/\/secure.jeffclarktrader.com\/?cid=MKT497103&#038;eid=MKT497764&#038;step=start&#038;plcid=PLC083297\" target=\"_blank\" rel=\"noopener noreferrer\">This strategy could even beat the computers<\/a> at their own game.<\/p>\n<p>As part of my premier options trading service, the <em>Delta Report<\/em>, you can see how I put this strategy to use&hellip; all while focusing on minimizing risk and maximizing gains. <a href=\"https:\/\/secure.jeffclarktrader.com\/?cid=MKT497103&#038;eid=MKT497764&#038;step=start&#038;plcid=PLC083297\" target=\"_blank\" rel=\"noopener noreferrer\">Just click here<\/a> to see how this could be the most predictable way of making money in the markets.<\/p>\n<h2 align=\"center\"><strong>Reader Mailbag<\/strong><\/h2>\n<p>In today&rsquo;s mailbag, <em>Delta Report<\/em> subscriber Gary shares why he disagrees with Jeff&rsquo;s analysis in <a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/this-might-cause-a-riot\/\">Monday&rsquo;s essay<\/a>&hellip;<\/p>\n<blockquote style=\"border-left: 4px solid #ccc; margin: 0px 30px 0px 10px;padding-left: 15px;\">\n<p style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; margin-bottom: 20px;\">Regarding the Invesco Agriculture Fund (DBA), I can&#8217;t agree with your analysis on the chart. Because if what you&#8217;re referring to was true, that bacon would have been $15 a pound back in January. But I agree food costs are rising beyond reason, just like everything else.<\/p>\n<p>I&#8217;m retired, but minimum wage increases are going to drive a lot of costs up that my social security certainly won&#8217;t keep pace with! Next thing you know, we seniors will be holding up a McDonald&#8217;s drive-thru!<\/p>\n<p align=\"right\" style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; margin-bottom: 20px;\"><strong>&ndash; Gary<\/strong><\/p>\n<\/blockquote>\n<p>Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming \u2013 and send us any questions \u2013 at <a href=\"mailto:feedback@jeffclarktrader.com\"target=\"_blank\">feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>No matter what happens on November 3, energy stocks are set to move higher&#8230;<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-16708","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/16708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=16708"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/16708\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=16708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=16708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=16708"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=16708"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=16708"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=16708"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=16708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}