Welcome back, everyone.
Russia’s invasion of Ukraine has shown us how vulnerable we are to oil and gas supply.
And that’s raised questions about how we can improve technology to be less reliant on fossil fuels…
The first technology that comes to mind to switch us off oil and gas is electric cars.
That can have some good implications for EV stocks, but supply and demand issues come into play with any commodity…
So today I’ll break down some pros and cons of this potential consumer shift. Plus, I’ll share another sector that could benefit — and it’s not what you think…
Click here to get StocksToTrade’s three hot sector scans for FREE.
High Oil and Gas Prices Means Hot EV Plays
Since oil and gas prices skyrocketed, Tesla, Inc. (NASDAQ: TSLA) shares have been on a huge run. It’s climbed from $800 to over $1,100 in just a couple of weeks. Check out this chart…
TSLA chart: 3-month, 1-day candle — courtesy of StocksToTrade.com
That’s a crazy run for a large-cap stock.
Then there’s Mullen Automotive, Inc. (NASDAQ: MULN). Like I said yesterday, it spiked on a midday Breaking News Chat alert on Wednesday.
Yesterday, MULN gapped up and was one of my top watches. Set an alert and wait for a break above $3.50…
MULN chart: 3-month, 1-day candle — courtesy of StocksToTrade.com
There are a ton of believers in this stock. I get DMs from people all the time claiming MULN is the next TSLA. But we know better than that.
We know the overall market news is helping some of these small cap EV stocks run. And they’re moving in sympathy to TSLA.
So trade it for what it is — a junk penny stock.
Focus on trading the hype, momentum and patterns. But keep your eyes on the news and the effects it can have on other sectors…
The Story Behind a Potential Hot Sector
Switching to electric vehicles might reduce our reliance on oil and gas. But it will increase our reliance on another commodity…
Basic materials.
Specifically metals. EVs need lithium, nickel, and copper for battery production.
Nickel supplies are down, while demand and prices skyrocket. And the Russia-Ukraine crisis isn’t helping…
Supply concerns are driving up metal prices faster than a Tesla goes from 0-60.
And increased prices and supply concerns recently drove Tesla to sign a multi-year deal with Vale S.A. (NYSE: VALE) to get nickel from Canada.
But while I think all of this negative news could add up to a hot sector in the future … right now it’s just a watch.
Remember what it takes for any stock to be a buy. It must check all the boxes. And we never anticipate. We react. But that doesn’t mean you can’t prepare…
Get ready for a potential hot sector by building your stock scans. Learn how to build a hot sector scan here.
Then build your watchlist so you’re ready when a sector heats up.
And while we wait for EV demand and high oil and gas prices to spark the metal sector — oil and gas stocks are still on my radar…
In fact, three of the five stocks on my weekly watchlist were oil and gas stocks…
And a SteadyTrade Team member used StocksToTrade’s FREE oil and gas scans to find Southwestern Energy Company (NYSE: SWN) last week — before I featured it on my watchlist.
We released our three free oil and gas stock scans a few weeks ago for a limited time…
But we brought them back because there’s still so much opportunity in this sector.
If you’re a StocksToTrade user and you haven’t downloaded them — get them for free here.
If you’re not a StockToTrade user, we’re here to help you find the hot plays…
We’re offering an incredible deal on StocksToTrade for a limited time. And when you sign up, you can download your three oil and gas stock scans for FREE!
Grab this limited time offer while it lasts!
Have a great day. I’ll see you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
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