Energized

Here I am in silence
Looking 'round without a clue
I find myself alone again
All alone with you
--Information Society

Following up on last weekend's thoughts, I was fairly active today in the commodity space. As anticipated, commodities caught some wind today, with many ETF charts showing near term breakouts.

My primary focus today was oil and energy. Inflationary pressures appear to be building much more so than I was formerly anticipating. While this is affecting commodities broadly and particularly the ags, my growing sense is that oil may be ready to move north with some power. Combine current tensions + Fed's paper blizzard + energy geopolitics (as reflected in the map below taken from this MV article), and, well, you have the sum of my current thought process.

After initiating energy ETF positions early, I was already adding to them mid-day higher in 'pyramid' fashion as prices moved higher. I plan to add more on further strength.

Not typically the way I roll. But pyramiding can be an effective way to enter a trending market while still managing risk. Essentially, I want to use gains from lower priced shares to buffer risk of acquiring higher priced shares. Stops are employed to manage the downside if prices reverse and head south.

positions in DBE, DBO, RJA, RJI