Yo Pit Crazies,

Today was a mostly inside day as the SPDR S&P 500 ETF Trust (SPY) got tired from my Perfect Storm rally.

Some pundits say this is the lowest breadth market rally in years.

One reason why is because a lot of industries have gas prices as a variable cost. Those costs are high, but will they last? Reports out of the Persian Gulf are that oil is running up to 70% of pre-Iran Conflict levels.

Heck see below, maybe Iran is not “winning” the conflict. Maybe gas prices will start to drop again.

As I recall, gas prices have spent a lot of time going down since Rockefeller started Standard Oil. The only time they rally is a problem in the Middle East or some random supply issue.

This, of course, is the issue President Trump was trying to address. No more supply shocks if this grand plan works out.

We’ll have to wait for the results, but it seems to have turned a corner.

Why I Watch VIX

VIX is putting in a 30 day low close.

That’s an Iran Conflict low close. I don’t know about you, but a low close in VIX is a sign that maybe, just maybe, the USA is winning.

When VIX is climbing, traders are more nervous. Just last week during the Perfect Storm, VIX was over 18 for a brief moment in time. Today it’s hurtling toward the 13 handle.

That’s crazy bullish and great for my Perfect Storm trades.

VIX 30-Day Chart

That brings me to stocks that might benefit from lower oil prices.

Lululemon Athletica (LULU) should find nice margins on their see through yoga pants once again. It’s climbing up the early stages in my Sibyl AI scanner.

There are a lot of stocks that will benefit from a normalization of oil supply.

A few of them might be on the list above.

Oil means power, and AI needs power generation. Luckily, I have Frank Gregory.

Tap this link to see his latest idea.

Hope this was helpful,

Andrew Giovinazzi