Chesapeake Energy Corp (CHK)

[dwms07]

WHEN WILL $TEN BLOW IN?


Take a look at the cold nights blowing in from the Northwest: 10-day-report

Now muddle along with me.

There are millions of investors who swear the planet is warming and we are all gonna die from heatstroke. They are gonna sell CHK short in December. Then there are millions like me who think the planet is headed for a cold period and we are all gonna freeze to death. They are gonna load the wagon down to the axles with CHK.

This is the tug-of-war we are in now!

If the US weather stays cold over the next 30 to 60 days, the global warming group will realize they've been conned and reverse their short position and go long. If it warms up, the global cooling group will reverse their long position and go short.

We got another problem.

Oil traders are using CHK as a great daytrade stock because of high volume and low price. This makes it hard for us to climb when oil is bouncing up and down. On the other hand, the volatility does present daytrade opportunities for CHK longs if we use caution.

I've been doing great daytrading CHK. I've never thought about the signals I use. I just do it by gut instinct developed over 2.5 years of obsessional research and watching CHK trade tic by tic. But I also have a lot of daytrade buying power that makes it easy for me. Someone with less daytrade buying power could easily get burnt.

There is another question.

Trump takes office January 20th. OPEC is supposedly gonna cut production starting January 1st. Many don't realize it, but a lot of US oil experts have been suggesting a tariff on OPEC oil for many years. There are lots of reasons why we should break from OPEC and become energy independent! OPEC has known this for a long time. Trump has proposed a 45% tariff on all oil imports.

There is a lot of oil setting in super tankers right now just waiting till prices go up. The world is awash with crude! Iran is ACTING INSANE like they are ready to start World War III. This is an old trick played out since the dawn of time. Iran is like a mad dog threatening to bite until it gets hit in the head with big rock!

I think Trump should slap a 45% tax on OPEC oil and be done with the Middle East!

So... bottom line is $10 will like come after the OPEC mess settles and we see what Trump is gonna do. I also think CHK could blow right passed $10 and move quickly to $12.