On Wednesday, every idiot on Twitter said the oil and gas stock run was over…
Then yesterday, crude oil jumped back over $100 a barrel.
Real stocks, like United States Oil Fund, LP (NYSE: USO) and Halliburton Company (NYSE: HAL), followed suit. So did the sketchy low float penny stocks.
I don’t think the oil and gas stock run is over yet…
There’s still unrest in Ukraine and Russia. Even if tensions ease (and I hope they do), we’re still dealing with record-high inflation. And the Fed just raised interest rates for the first time since 2018.
The country — heck, the world — still relies heavily on oil and gas products. We can’t switch to alternative energy overnight.
That’s why I think we could see a bounce — and possibly an epic short squeeze — in junk oil and gas stocks. You just have to wait for the right opportunity. Here are three steps you can take to help you prepare…
Want to find the hottest oil and gas stocks FAST? Get StocksToTrade.
1.) Run Scans
The best way to find any big percent gainer is to use your stock scans. You can customize them to find the specific stocks you like to trade. Get my top three scans here.
Use these top scan criteria to start:
- Price
- Percent increase
- Float
- Volume
- Sector
To find hot oil and gas stocks you’ll want to narrow your search for stocks in the energy sector. Then narrow it down again to the oil and gas industry.
StocksToTrade users don’t have to go through that hassle. We’ve leveraged the power of technology and created three custom scans designed to find hot oil and gas stocks NOW. Download them for FREE here.
Not a StocksToTrade user? Get a limited-time discount including access to our three oil and gas scans here.
Next…
2.) Plan Your Trades
Once you have a list of oil and gas stocks from your scans — study the charts.
Is there a trade opportunity? Where are the support and resistance levels? What pattern are you looking for — breakouts, a first green day, or a morning dip and rip?
Use Oracle to help you spot key levels and plan trades.
When it comes to sketchy oil and gas stocks, I’m interested in red-to-green levels.
All these stocks are heavily shorted right now. And that’s where I think shorts will panic and buy to cover…
We already saw moves in Indonesia Energy Corporation Limited (NYSE: INDO) and Imperial Petroleum Inc. (NASDAQ: IMPP) yesterday. Both of them gapped up and opened above the previous close. And they climbed over 30%!
Once you know the key levels you want to trade off…
3.) Set Alerts
If you’re in Premarket Prep or the SteadyTrade Team, you know I harp on this a lot. It’s because alerts can make your job so much easier…
You don’t have to watch all the stocks on your watchlist day in and day out. Use alerts — set it and forget it.
When your alert goes off, look back at your trade idea and do some research. Find out why the stock’s up. Is there news? Is it following hot sector momo and oil prices? Or is it a low-volume spike and not worth trading?
Listen, not all alerts mean a trade opportunity. But they can save you a ton of wasted time watching for a trade that never comes.
Our goal as day traders is to spot opportunities FAST, make trading plans, then execute accordingly.
The best way to do that is with the right technology. Give yourself an edge and prepare for anything with StocksToTrade.
If you have any interest in potentially profiting off the volatility in oil, then you owe it to yourself to check this out. Timing is everything.
Click here before this deal is gone forever.
Have a great weekend. I’ll see you back here on Money Monday.
Tim Bohen
Lead Trainer, StocksToTrade