Loading ...Otavio (Tavi) Costa
@TaviCosta
·
Dec 7
Energy stocks keep inching higher, quietly building the pressure for what I think could become a sharp, decisive breakout.
You can’t perfectly time these inflection points, but the macro pieces are falling into place:
▪️Positioning remains deeply bearish.
▪️U.S. oil and gas rigs are contracting meaningfully.
▪️Oil is trading near one of the cheapest levels in history relative to the money supply.
▪️Energy’s weight in the S&P 500 is hovering near record lows.
It reminds me of when people said I was crazy for buying mining stocks, insisting metals would never move.
While my conviction in miners hasn’t changed one bit, I also see energy equities as one of the most fundamentally attractive corners of the market right now.
