NACHO Father’s Energy Shock

Traders sifted through the “Magnificent Seven” earnings after the bell last night and found enough support to push stock futures to all-new all-time highs.

For its part, the U.S. naval blockade of Iranian ports drove oil back above $105, near the highest level since the conflict with Iran began in early March:

Even as tech stocks shrug off higher energy costs, oil reaches $105 a barrel again. (Source: Stockcharts)

Traders also love acronyms. The latest to circle around trading floors, NACHO – Not A Chance Hormuz Opens — describes the oil trade if prices stay “higher for longer.”

This time is different. In early March, when oil broke $105 the first time, the S&P 500 Index corrected from 7,000 to 6,300. While Mag 7 companies are showing decent earnings, energy companies are most likely to surprise with upside earnings in the quarters ahead.

If oil prices do, in fact, stay higher for longer, companies in the energy space will see big jumps in profit margins. For the duration, energy will offer better returns for investors from capital gains…and income.

In Grey Swan Pro, Andrew selected an energy play that should perform well from today’s high energy prices. The kicker: It’s an income gusher that will offset any oil price volatility.

If you’re interested, you can upgrade your own Grey Swan membership to Pro status by clicking here.

~ Addison

P.S. Tomorrow, Grey Swan Live! returns with a new guest: Jeff Opdyke.

Jeff is a former Wall Street Journal writer who has moved not just to heavily invest overseas, but also to live overseas. Today, he’s trading and writing Global Intelligence Letter from his bolt hole in Portugal.

We’ll talk with Jeff about how he made his move overseas, why he’s focused on international investing, a weaker US dollar and some of the top foreign markets for investors today.

Traders sifted through the “Magnificent Seven” earnings after the bell last night and found enough support to push stock futures to all-new all-time highs.

For its part, the U.S. naval blockade of Iranian ports drove oil back above $105, near the highest level since the conflict with Iran began in early March:

Even as tech stocks shrug off higher energy costs, oil reaches $105 a barrel again. (Source: Stockcharts)

~ Addison

P.S. Tomorrow, Grey Swan Live! returns with a new guest: Jeff Opdyke.

We’ll talk with Jeff about how he made his move overseas, why he’s focused on international investing, a weaker US dollar and some of the top foreign markets for investors today.

Debts and deficits will eventually cause a crisis. Treasury Secretary Scott Bessent’s effort to help bail out the Japanese Yen this week is entirely motivated by self-preservation. The contagion signal flashing in Japanese bonds since late ‘25 is infecting the BOJ, which may be forced to sell U.S. Treasurys to stabilize its own currency.

The copper price is no doubt benefiting from inflation driven by money printing. But the doc don’t lie. Copper’s new all-time highs, while gold and silver still languish, are a sign the AI growth story is also that of the global economy itself.

Many miners were profitable with gold around $2,000 and silver near $50. At sustained prices closer to $4,000 gold and $60 silver, the arithmetic changes dramatically.

The stock market is getting an unexpected boost to kick off August, bucking the historically weak summer session for the U.S. stock market.

What’s happening? The Bank of Japan and the U.S. Treasury are making a coordinated effort to support Japanese yen; a move last attempted nearly 30 years in the height of the Asian Financial contagion (1998).

Many miners were profitable with gold around $2,000 and silver near $50. At sustained prices closer to $4,000 gold and $60 silver, the arithmetic changes dramatically.

The stock market is getting an unexpected boost to kick off August, bucking the historically weak summer session for the U.S. stock market.