You Might Need to Burn Wood for Heat Soon

Millions of Europeans are struggling to heat their homes right now... Take Henry Backhaus, for example. [Chaikin PowerFeed]( Editor's note: The markets and our Chaikin Analytics offices will be closed Monday, May 30, for Memorial Day. Because of that, we won't publish the Chaikin PowerFeed e-letter. Look for your next issue on Tuesday, May 31. Enjoy the holiday. You Might Need to Burn Wood for Heat Soon By Pete Carmasino, chief market strategist, Chaikin Analytics Millions of Europeans are struggling to heat their homes right now... Take Henry Backhaus, for example. The 65-year-old German man used to buy natural gas through a private gas distributor. But then, [Russia's war in Ukraine]( sent prices soaring across Europe. Now, the private gas company can no longer afford to buy natural gas. So it dropped Henry as a customer. That gave Henry no choice but to work with the local utility to get his natural gas. The problem is, the local utility wanted Henry to pay the equivalent of $850 for the first month alone. That's more than he previously paid to heat his home for an entire year. So... Henry fired up his wood-burning stove. Thousands of folks across Europe are doing the same thing. Unfortunately, that's not an option for everyone. Many people simply need to pay the higher costs. Folks, we're on the edge of summer here in the U.S. But winter will be here again before we know it. And America is closer to facing Henry's reality than you realize. Today, I'll explain how natural gas prices could potentially quadruple from here... Recommended Links: [NEW STOCK ALERT: '13X' Gains from Little-Known Botox Disruptor?]( A tiny American company (trading for around $15 per share) could be days away from completely upending one of the BIGGEST and most SUCCESSFUL brands of all time, Botox! Senior analyst Mike Barrett predicts the potential for "13X" gains for those who act now... and believes this will become his No. 1 recommendation of all time. Until midnight tonight, [get all the details right here... including a rare $2,000 free bonus](. [A Massive Wave of Bankruptcies Is Coming]( It's actually much bigger and more important than what happens to the Nasdaq or S&P 500. Yet some of the world's best investors are practically drooling in anticipation. Because this crash will create a slew of 100%-plus opportunities... backed by legal protections that stocks can only dream of. A top analyst tracking the story believes this could happen within months – and you must prepare now. [Get the full story here right away](. In the U.S., we've enjoyed lower energy prices for decades compared with our overseas counterparts. Natural gas in Europe costs $30 per million British thermal units ("MMBtu") today. And it has been as high as $45 per MMBtu. Here in the U.S., prices just passed $9 per MMBtu. Now, things are a little different in America. Historically, foreign pricing issues don't bother us. That's because North America is vertically integrated... Natural gas is either produced in the U.S. or brought in from Canada. It's easy to access. So we've benefited from a foreign-pricing buffer in the past. Even better, the shale boom led to an abundant supply. Growing shale production easily exceeded demand. The surplus led to lower prices and a stable outlook for the past 15 to 20 years. However, that's changing now. And we should prepare for the worst... I wasn't joking about burning wood to heat your home. It's happening in Germany already. And with U.S. natural gas prices already surging, it could become our reality next winter... Gas prices are already up more than 100% in 2022 here in the U.S. And the market is tighter than some realize... In fact, the U.S. only recently became a natural gas exporter. And our surplus is relatively small compared to our consumption... Specifically, in 2021, our surplus only exceeded our consumption by about 13%. Nearly all of that surplus is tied up in exports. Sure, we benefit from our gas-rich shale deposits. But low prices have slowed production. And the U.S. simply wasn't prepared for the kind of market we're seeing right now... It takes a long time for production to ramp back up. You can't just flip a switch to turn it on. The energy space is also facing pressure from climate-change enthusiasts. As a result, not as much capital is flowing in for oil and gas producers. And no matter where you stand on the issue, the fact is simple... policy changes hurt investment in the oil and gas industry. Then, you need to add in increasing headwinds due to labor shortages and more. And suddenly... it's a recipe for disaster. Folks, keep your eyes on the energy sector today. We might be burning wood to heat our homes sooner than you think. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +1.62% 7 20 3 S&P 500 +2.01% 90 299 105 Nasdaq +2.77% 9 65 25 Small Caps +2.17% 242 1127 518 Bonds -0.45% Consumer Discretionary +4.90% 1 24 33 — According to the Chaikin Power Bar, Small Cap stocks are more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Top Movers Gainers [rating] DLTR +21.86% [rating] DXC +15.99% [rating] DG +13.72% [rating] NCLH +12.09% [rating] CZR +9.96% Losers [rating] KHC -6.10% [rating] MDT -5.78% [rating] MOH -4.98% [rating] CNC -4.01% [rating] CF -3.84% * * * * Earnings Report Reporting Today Rating Before Open After Close AAP, OLLI No earnings reporting today. Earnings Surprises [rating] ZS Zscaler, Inc. Q3 $0.17 Beat by $0.06 [rating] ULTA Ulta Beauty, Inc. Q1 $6.30 Beat by $1.81 [rating] DELL Dell Technologies Inc. Q1 $1.84 Beat by $0.45 [rating] DLTR Dollar Tree, Inc. Q1 $2.37 Beat by $0.39 [rating] VMW VMware, Inc. Q1 $1.28 Missed by $-0.28 * * * * Sector Tracker Sector movement over the last 5 days Energy +6.78% Financial +6.00% Staples +5.09% Information Technology +4.63% Real Estate +4.13% Discretionary +4.03% Utilities +3.73% Materials +3.32% Industrials +3.12% Health Care +2.82% Communication +1.88% * * * * Industry Focus Insurance Services 14 34 3 Over the past 6 months, the Insurance subsector (KIE) has outperformed the S&P 500 by +12.12%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #3 of 21 subsectors and has moved up 2 slots over the past week. Top Stocks [rating] RGA Reinsurance Group of [rating] AXS AXIS Capital Holding [rating] UNM Unum Group * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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