Chart Industries Sets Up For Another Up Leg

Chart Industries (GTLS) currently trades tightly over its 20 ema (daily exponential moving average) as it digests its recent three-week up move and sets up for another possible leg higher.

As a leading supplier of cryogenic distribution and storage equipment, the company provides the backbone for building out the natural gas fueling stations set to populate the United States (see Clean Energy Fuels (CLNE)) over the next ten years. More and more trucking companies are replacing their diesel engines with natural gas engines (see Westport Innovations (WPRT)) since the conversion pays for itself in six months with the savings from using cheap natural gas versus diesel. Thousands of new natural gas fueling stations are planned to meet the growing demand by truckers.

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About jstradingnotes

I spend a lot of time analyzing the economy and securities. The effort has enabled me to generate multi-thousand percent returns on my trading capital over the past twelve years. The next few years offer an incredible opportunity to take outsized gains from the markets. Large structural imbalances in the major western economies will result in enormous market volatility as the imbalances get resolved, offering generational money-making opportunities. The major imbalances are excessive sovereign debt, crazy risk concentration in major banks, and enormous derivative exposure in the financial sector. A systemic shock can easily create a default cascade through the financial system where one failure precipitates another and another and so on. Central banks are very aware of the risks, and they are filling the financial system with liquidity by printing new money, risking massive inflation in a few short years for the United States and Europe. China has 2-3 trillion in dollar exposure, and they would like to have far less for fear of continued currency devaluation (they've lost billions holding dollars as the value erodes). As the size of their holdings prevent them from rapidly liquidating their dollar assets (which includes U.S. treasuries), they are instead spending their dollars on resources (copper mines, rare earth metal mines, oil wells, etc.). Lately they have been accumulating gold assets, perhaps with a view to making the Renminbi convertible into gold and displacing the U.S. dollar as the international reserve currency. Their gold buying is enormous and presents an easy investment thesis: ride the Chinese horse and buy gold and gold stocks. In this blog, I'd like to share some of my trading ideas and insights on the markets as these exciting times unfold.
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