China + Crude Oil = Momentum

If you have been following the energy markets lately you would have noticed that Light Sweet Crude hit an all time intraday high of $80.17 in electronic trading today. Whether the U.S. economic slowdown will put downward pressure on oil remains to be seen. I remain bullish on oil and crude oil trading volume. I am long both the NYMEX (NMX) and the Intercontinental Exchange (ICE). The global growth story will remain bullish for energy trading and demand. Today I increased my energy exposure with the addition of CNOOC (CEO), a Hong Kong based diversified energy company. CEO is more of a technical trade as it is one of the few energy stocks making 52-week highs.

Publicly Traded Chinese Energy Companies (Market Cap)

PetroChina (PTR) $260B
China Petroleum & Chemical Corp (SNP) $93B
CNOOC (CEO) $58B

I am long CEO, NMX, & ICE

Selling This Strength

I have used the recent market strength to exit several positions. I closed my positions in Silver Wheaton (SLW) and Arcelor Mittal (MT). I still remain bullish on metals but I would like to see more attractive valuations before committing money to the sector. I also closed my position in Terra Nitrogen LP (TNH). I would consider reentering TNH below $85.