When the sun goes down Texas is in a precarious position, wind and thermal sources aren’t performing. Traditional dispatchable (it can be turned off and on) are not being proposed at the same rate as wind and solar.
Threat of Outages Could Rise, SA Express News
Reality seems to be setting in on the universal (read total reliance) on wind and solar ‘renewable’ sources. Even the London Mayor is giving up on all EVs by 2035. Texas was apparently saved from a power grid collapse by the recent rains in Houston and here from a low-grade tropical storm.
Crude oil is up over a buck this morning to cross $84. It has been basing all year between $65 and today’s $84. Weekly close above $85 should confirm a big bull move. Recall crude hit $130 in March of 2022. Much higher prices are in store, particularly when some power grid fails in the U.S.
Speaking of Bidenomics, unleaded gasoline futures have a similar pattern this year. Gasoline has bounced between $2.00-3.00. A weekly close over $3 will confirm a bull move here. The gasoline futures peak in 2022 was $4.25. Will we hear about the success of Bidenomics as futures race past $3.00, which would be $3.75 or so at the pump?
Our recommendations for Nustar NS and Nustar Preferred B have worked well, both offering 9%+ yields. Preferred B is off a dollar today but after the big run and spike Thursday, this is to be expected. Preferred B was recommended below $22 and has risen to over $25, not bad for such a high yield.
For a glimpse at what a real bear market looks like for one stock, check out Icahn Enterprises. A major short seller claimed it was over valued at $47.50 in March, It plunged to $17.50, recovering to $32.50. It has resumed its downtrend now trading at $20. This is a stock that with dividends reinvested returned 3% per year since 2000. How quickly fortunes change when the bear emerges.
A front-page article in the WSJ today proclaims Surge in Spending Propels Growth. Yet page B1 tells us Discounter Flash Warnings on Weaker Demand. Which is correct? Big Lots, Dollar General DG, and Dollar Tree are all way down. Just this year DG has collapsed from $250 to $132, a fall of 48% in eight months. Like IEP, this is evidence of the stealth bear market getting underway. Dollar store customers saved during the pandemic when so many retail outlets were closed. Now those savings are gone and the spending pull back begins. The better-off households are spending, the paycheck to paycheck crowd is already in trouble at DOW 34,000.
