How Much Are You Paying for Gas?

I’m back in Michigan at the Knuckman compound.

But I couldn’t escape the oil market drama — not even on my quiet drive through Wisconsin.

On my ride, I noticed the price of gas has dropped considerably. No, you won’t be able to fill your tank for free just yet! But I did manage to fill up my truck for less than $20. I can’t remember the last time I was able to accomplish this feat…

gas prices

as is under $1 in Wisconsin!

As I crossed the border, gas prices quickly jumped. One gallon would have set you back $1.76 at my first Michigan pitstop. That’s a whopping 80% higher than what I paid just a few hours earlier on my way to God’s Country.

Maybe this is the “energy price shock” we should investigate. These certainly don’t feel like free markets to me…

Speaking of the markets, prices have stabilized in oil after what looks like crude capitulation and the stock market is also resting for what looks to be the next leg higher. June crude also hit $18 on Wednesday after the financial unwinding contract expiration debacle (it has since retreated about $1).

Judging by the choppy action Thursday and Friday, investors were looking for some direction heading into the weekend. As expected, unemployment continues to pile up as virtually all non-essential businesses remain shuttered. Unemployment numbers as of last week rose by 4.4 million, down from the 5.2 million reported the week before. These numbers would be shocking in a vacuum. But since they were in line with estimates, the market took the bad news like a champ.

Now we head into the new trading week with the S&P 500 still contending with the 2,800 level we’ve been watching so closely. As I’ve noted from the start, this is an important inflection point. The S&P will likely require multiple attempts to stage a meaningful rally off this level.

Here’s to some more green on the screen this week to fuel the recovery rally!

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Chart of the Day: The King “Stay-at-Home” Stock!

Greg GuenthnerThe NFL draft was supposed to happen this past weekend in Las Vegas.

But due to the coronavirus shutdowns, the NFL was forced to go a different route. Instead of a glitzy Vegas affair, the league went virtual in what Yahoo Sports declared the most successful Zoom call of all time.

Sure, you could watch the first round of the draft on your television. But where’s the fun in that? The real fans were apparently joining Zoom draft parties all across our quarantined nation.

As you might expect, these draft festivities gave Zoom Video Communications Inc. (NASDAQ:ZM) even more positive press.

Just look at this amazing chart:

ZM chart

Zoom was building a strong rally weeks before nationwide shutdowns went into effect. But the trend has accelerated as countless firms now rely on Zoom to maintain communication with their workers during these unprecedented times.

We’ve spilled some serious ink discussing these stay-at-home stocks recently. While restaurant and retail names continue to suffer, the stay-at-home firms that provide streaming entertainment, remote meeting software, home delivery, and other quarantine necessities continue to attract more than their fair share of speculators.

With ZM’s impressive year-to-date gains topping 160%, you’d be hard pressed to find a stronger play in this group.

— Greg Guenthner

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Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

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