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The Secret to Profiting From the Saudi Attacks — This “A-B-C” Pattern

Nearly two weeks ago, Saudi Arabia was hit by a well-planned drone attack, cutting the nation’s sizable oil output in half!

While governments around the world undertook investigations to verify who was responsible for the attack, Wall Street traders went to work jacking up the prices of oil and many of the stocks for oil producing companies.

Fast forward to this week, and things seem to have settled down a bit.

Oil prices have given back much of their initial pop. And Saudi Arabia has assured the world that its production will be back online in a matter of weeks.

But behind the scenes, traders are gearing up for a massive turning point for oil and energy stocks. And today, I want to share a secret with you that will help you identify key opportunities like this, and make out like a bandit when the next wave of buying hits the oil market.

This simple secret is as easy as A-B-C. And you’ll want to take some good notes on this approach, because you can use it in many different market areas whenever a key event like this happens.

The A-B-C Pattern for New Investment Events

There’s a reliable market pattern that typically happens any time we get a new shock to a market like we had for oil last week.

Professional traders call it an A-B-C pattern. And if you know how this setup works, you can make a lot of money in a very short time!

Here’s how the A-B-C pattern works.

First, you have an initial “A” reaction to the news. This is exactly what we saw last week when oil prices and energy stocks shot straight up after the drone attack on Saudi Arabia.

Investors rightly expected that this attack would reduce the supply of oil to the global market, driving prices higher.

Part “B” happens when traders start to lock in profits from the initial move. As their sell orders hit the market, prices naturally pull back.

This can be frustrating to investors who were late to the party and bought near the highs a day or two after the news hit. Many of these investors will throw in the towel a week after entering their positions. They simply aren’t patient enough to let the A-B-C pattern develop.

Finally, part “C” happens when short-term traders and frustrated investors stop selling.

Stocks are then free to trade higher based on the actual profits that companies are expected to make. And if the original news event is very good for the stocks in question, this part of the pattern can last for quite some time and lead to unbelievable profits!

The key for investors is to understand how these parts evolve, and to make sure to be invested during the “part C” portion where profits are the most reliable and most lucrative.

Energy Stocks Enter the Sweet Spot for Our A-B-C Pattern

Today, we’ve got a perfect opportunity to tap into this secret trading pattern for energy stocks tied to the oil market.

We’ve already seen part “A” occur immediately after the drone strikes on Saudi Arabia.

And part “B” has been taking place over the last week. Short-term traders have taken profits off the table. And weak investors have been discouraged by Saudi Arabia’s optimistic statements about production capabilities being back online in a matter of weeks (not likely).

Part “C” is set to send energy stocks higher as investors realize that the environment for oil markets has fundamentally changed.

Iran is committed to disrupting America’s influence in the Middle East. The country is struggling under sanctions that have been imposed through a global effort to deter Iran’s nuclear programs. And attacking U.S. allies like Saudi Arabia has become Iran’s go-to strategy for fighting back.

This means we can expect more attacks like this in the future. And the expectation of attacks like this will naturally help to boost oil prices.

Meanwhile, U.S. energy companies can now sell the oil they produce at higher prices, leading to bigger profits.

These profits should drive more investment in new wells, leading to gains for companies that supply equipment, drilling expertise, and other services to the oil market.

Smart investors know to have patience after a news announcement like last week’s drone attack, and wait for the A-B-C pattern to develop.

Today, we’re entering the sweet spot — part “C” for energy stocks.

I hope you’ll take advantage of this opportunity and invest in some of America’s most profitable energy stocks today. That way, you’ll be able to look back on this pattern and know that you made the most of the opportunity this market gave you.

Here’s to growing and protecting your wealth!

Zach Scheidt

Zach Scheidt
Editor, The Daily Edge
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Zach Scheidt

Zach Scheidt is the editor of Lifetime Income Report, Income on Demand, Buyout Millionaires Club, Weekly Squawk Box, Contract Income Alert and Family Wealth Circle — investment advisories dedicated to finding Wall Street’s best yields. He brings to the table impeccable investment management experience and a solid record of identifying oversized payout opportunities.

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