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How to Make Money in the Stock Market or Commodity Market Off the Hurricane Irene

Updated on March 4, 2014

Providence From Hurricane Irene

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How to Make Money in the Stock Market or Commodity Market Off the Hurricane Irene

You can make money in either the stock market or in the commodity market dependent upon which strategy you decided to use. As always I will tell you consult a professional advisor as I am not and don’t put any amount of money in the market you are not willing to light on fire. Now that I have gotten that bit out of the way here is my thoughts on how you can make money off of Hurricane Irene.

Because Hurricane Irene has hit North Caroline and New England it will inevitably shut down the refineries. That means there will be less gas available and hence with small supplies of gasoline the prices of gasoline will increase. The majority of the refining in New England is specifically for home heating oil which means you will see a spike in gas prices at the pump for your car but this winter home heating prices in New England will be much higher. If you live in New England you might consider purchasing stock in your local utility company to off set your winter gas bill.

I can imagine this is hard for you to believe because Libya is free and they will sell us oil at a reduced price. But Libya will actually increase oil prices. Even at reduced prices Libya still has to ship oil which is very expensive and therefore oil prices are still going to be high.

So my suggestion to all of you interested in investing who are only willing to put money in the market, that they are prepared to lose and who consult a financial advisor which I am not to invest in Gasoline, Natural Gas, and specifically utility companies.

And while my heart goes out to everyone affected by Hurricane Irene I also believe individuals should have the opportunity to invest in what is a natural phenomenon in order to make money.

Which side of the trade will you choose? There are always two sides of any trades and in a lot of instances there are more but for the purposes of this article I will only write about the two sides of this trade. In general, you can either “go long” which means you buy now and wait for the price to go up and sell at a profit or you “go short” which means you purchase shorts and expect the price of oil to go down. Personally I would go long in this scenario but that is only me. The nature of the stock market is to go up and down. It is constantly in a state of flux. As soon as everyone else figures out to buy oil, natural gas and utilities the market will be over bought and it will have to go down. But right now the market is closed and it will not open again until Monday if you are in the USA. This gives you an opportunity to capitalize on a really horrific natural disaster. But understand as soon as you do everyone else will jump in and it is only a matter of time until oil, natural gas and utilities are over bought and then you will have to sell.

Again I will suggest some stocks here because I like them and I am not a stock broker so this is just friendly advice.

Day Trading Crude

Rds.a

I like…

Royal Dutch Shell ADR which produces n the Gulf because more oil will have to be produced in the gulf to compensate for the loses in New England refining. And it is an American Depository Receipt which pays a good dividend.

Here is the two year chart on RDS.A

XOM

Exon Cursed Exon will also gain oil contracts out of Libya and therefore this company has a lot to gain in stock price over the next several years.

Here is the two year chart on Exxon. This is such a great deal as the others but has the potential to make atleast $20 a share

British Petro

BP after the Gulf spill I am hard pressed to recommend this stock but let by gones be by gones. This stock will also gain a lot of value because it will be awarded a

Contract in Libya as well


CHK

Chesapeake. Symbol CHK . It is trading around $30 share but was Energy high as $80 a share two years ago and it heats Corporation Maryland so I feel comfortable recommending it.

Here is the chart


NOG

Northern Symbol NOG which I like and feel it has potential for movement oil higher. This is a natural gas company Gas.

And here is the two year chart for you to analyze.


Trading the Violaity Index

While I will not tell you how to trade oil futures at this point I will allude to the fact that I believe Hurricane Irene will create more volatility in the stock market and that you might want to consider trading the CBOE or the VIX during this time. It is also a good idea because we are moving into a very tight presidential race which will create a great deal of uncertainty in the market. So I will provide you with the charts so you can study them and make an informed decision. But I would suggest you make your decision by Monday.

Trading Volatility

In Conclusion

Now let me close by suggesting you read all of the charts. You make a decision as to which side of the trade you wish to be on. Many people get on both sides of the trade to make certain they make money but I do not recommend you do that especially if you are not an experienced investor. Only invest what you can afford to lose. Be clear I am not a financial analyst but someone who grew up with a parent that was a financial analyst and I am not licensed to provide professional advice. Consult a professional if you wish to invest as investments are very personal and risk tolerance is different based on age, income and several other factors. You have until the open of Monday’s market to get in if you wish to make money on this friendly advice.

I wish all of you the best. I would have explained how you could make a killing in the commodity market off Hurricane Irene but no one has expressed an interest in commodity speculation and again any advice I might give I would always preface it with consult an expert.

And if you have nay guilt about capitalizing off a natural disaster then I really suggest you invest, make money and donate it to the Red Cross because far worse people then yourselves will make money non this tragedy and they will not have a bit of guilt about doing so. At least you will share your wealth.

Hopefully you will see the world a little different after reading this article and you will know that there are opportunities for you to make money outside of the employment.


Comments

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    • JT Walters profile imageAUTHOR

      JT Walters 

      7 years ago from Florida

      Hi Deborah-Diane,

      Thank you for readng it and providing feedback. Yes, I agree everyone has to do their own research but I see an economic opportunity in this natural disaster. I can't stop the natural disaster nor can I put the refineries back on line during this storm but I can suggest ways to capitalize on Hurricane Irene and perhaps people can then use some of thier profits to aid the victims of this storm.

      All My Best,

      JT

    • Deborah-Diane profile image

      Deborah-Diane 

      7 years ago from Orange County, California

      Thank you for sharing your stock ideas with us. They were very intriguing, and your reasoning is very compelling. With a little more individual research, people could use this article as a basis for making some useful investment decisions.

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