The Just Got Rocked, And This Is Only the Beginning

It’s the first full trading week of the year, and markets are already moving on something few had priced in: a U.S. military intervention in Venezuela.

Over the weekend, U.S. forces captured Venezuelan President Nicolás Maduro, marking a dramatic shift in the country’s political trajectory and triggering immediate reactions across global markets.

Certain commodities are spiking, defense names are getting bid up. And a handful of other names are suddenly showing new signs of life.

Right now, certain traders are recalibrating, not just for short-term chaos, but for a potential long-term shift that could reshape the markets for months (or even years) to come.

Here’s what’s going on, and why these tickers just got a major boost.

Geopolitics Meets the Market

When the news broke on Sunday, global markets were caught off guard. The capture of Maduro, long a controversial figure in Latin American politics, created a sudden vacuum in a country that holds the largest proven crude oil reserves in the world.

As expected, the first market reaction was a flight to “safe” assets like gold, silver. Investors typically pile into these assets during moments of uncertainty. Those, as well as defense stocks all ticked up.

But oil told a slightly more nuanced story…

Oil’s “Wrong Direction” Dip and Then a Snapback

Surprisingly, oil prices dipped on Monday morning following the U.S. action, an unusual move given that geopolitical crises typically cause fears of a decrease in supply and a corresponding spike in crude prices.

But this time, markets seemed to be looking beyond the immediate headlines and factoring in a possible future where Venezuela’s vast oil reserves become more accessible and supply increases. Oversupply puts pressure on oil prices.

At the same, a large-scale revival of the Venezuelan energy industry will greatly benefit oil drillers. As a result, traders piled money into those companies and their sympathy plays, reversing the initial pullback and fueling a surge.

Add These Names to Your Watchlist

Even though a full turnaround in Venezuelan output could take years, the expectation of change is enough to fuel near-term price action.

At the same time, supply disruptions, whether from internal conflict, rebel pushback, or transition instability, could tighten the market in the short term, offering more upside to oil prices.

Here are a few of the names I’m watching. All of them are low-priced penny stocks and are suitable for day trading only.

Nine Energy Service, Inc. (NYSE: NINE):

Nine Energy is an oilfield services company that provides completion solutions, including casing, cementing, and wireline services.

It primarily serves exploration and production companies in North America, making it sensitive to oil price movements and drilling activity.

Imperial Petroleum Inc. (NASDAQ: IMPP):

Imperial Petroleum is a Greece-based shipping company specializing in the transportation of crude oil and refined petroleum products.

IMPP often attracts day traders due to its volatility and tendency to spike on sector news or geopolitical headlines affecting global oil supply.

Indonesia Energy Group (NYSE: INDO):

Indonesia Energy is a small-cap oil and gas exploration company focused on energy projects in Indonesia.

IMPP is known for its low float and history of explosive price moves, often triggered by news or speculation, making it popular among momentum traders.

My Final Thoughts…

While the long-term outcome of the U.S. intervention in Venezuela is still uncertain, one thing is clear: markets are already responding. The mere possibility of a reshaped energy landscape is enough to spark volatility and opportunity.

For active traders, that means keeping an eye on sympathy plays, short-term supply shocks, and speculative spikes in low-float energy stocks.

The headlines may shift, but the momentum in this sector is already in motion…

And January is just getting started!

Have a great day, everyone. See you back here tomorrow.

Tim Bohen

Lead Trainer, StocksToTrade