Oil price shocks…
I think it’s fair to say that they’re every investor’s worst nightmare.
In fact, I’d put those three words right up there with hearing things like “Your water heater is shot” or “Your root canal is way more complicated than we originally thought.”
From an investing standpoint, oil price shocks are so troubling because they’re unexpected, they’re unpredictable and they always lead to uncertainty.
None of those U-words (unexpected, unpredictable, uncertain) is what any investor wants to hear.
So the big question is…
As traders, how do you play this?
In The War Room, we have a solution. And it works.
Here’s the scoop…
The name we’re using to play oil price uncertainty is Intercontinental Exchange (NYSE: ICE).
The company operates exchanges, clearing houses and listing venues for commodity, financial, fixed-income and equity markets. The Intercontinental Exchange operates in the United States, the United Kingdom, the European Union, Asia, Israel and Canada.
The company’s trading and clearing segment maintains marketplaces for energy and agricultural commodities, metals, interest rates, equities, credit derivatives, exchange-traded funds, bonds and currencies.
The data and listings segment offers data services to support the trading, investment, risk management and connectivity needs of customers across major asset classes.
Over the last five years, Intercontinental Exchange has grown 36% in earnings year over year.
And, starting September 23, the company will start offering bitcoin futures trading.
Those two data points are certainly enough to paint a bullish argument.
But here’s why I especially like trading the financial market company…
Oil price shocks create more trading volume in the energy sector. And by design, more trading volume equates to more transaction volume. In other words, oil price shocks equal more business.
Action Plan: This week in The War Room, we’ve traded in and out of Intercontinental Exchange, which has resulted in winning trades. We continue to like the idea of buying on dips.
Today, a new member, Robert B., said, “3 for 3 winners.” To get the exact entry and exit advice and to start hitting daily winners, we invite you to join us in The War Room today!