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Equities had a decidedly mixed day – just three of 11 S&P 500 sectors finished higher by 4 PM. The energy sector, as tracked by the XLE ETF, was one of those standouts, and it’s easy to see why: Geopolitical risk and tension is continuing to increase, and supply is getting thin.
Oil in particular looks bullish. Gas prices could hit or exceed $4 a gallon by spring. That’s inflationary, and that’s spooking bond traders – bonds sold off steeply as yields spiked. I think energy options are where it’s “at” right now, so that’s what we’ll look at today…
