From a Historic Trump Rally to a Historic Brady Rally

LOS ANGELES, CA / ACCESSWIRE / February 7, 2017 / We're barely into 2017 and the Trump rally, which followed his come from behind election victory, took the Dow past 20K for the first time and then, on Sunday, the Brady rally helped New England score the largest come from behind victory in Super Bowl history.

Will oil, which has been moving up since it hit multi year lows about 11 months ago, be the next big rally?

If oil is the next big rally, look for the beneficiaries to run the spectrum, from the most obvious, which would be oil and gas producers, like Cabot Oil & Gas Corporation COG and ExxonMobil, to the less apparent, energy saving green and renewable technologies, like Tesla and Source Financial, Inc. SRCF, a producer of proprietary environmentally friendly refrigerants.

Since we just witnessed a historic Super Bowl, I first tried solving the oil price direction riddle by finding some type of correlation between the Super Bowl and oil price, but, no matter which combinations I checked, there were no discernable patterns. For example, LI was the Patriots ninth Super Bowl and, in their eight previous appearances, the price of oil ended four of those years higher and four of those lower.

Since there was no hidden oil price code, I decided to return to the real world, where the fundamentals, from potential OPEC production cuts to tensions with Iran, are beginning to point to the next wave up in this move.

However, as compelling as those fundamental arguments may be, the proposed U.S. tax code changes are the 800 pound gorilla in the market. Even though new domestic drilling will take a while to replace the OPEC cuts, the proposal would incentivize domestic refiners to process U.S. extracted oil over imports by giving domestic crude production a 25% advantage over international production, according to a recent Goldman Sachs' report.

Before you start thinking that you're going to see a savings at the pump, keep in mind that the lower domestic crude supplies could drive the crude market much higher and, even if the domestic crude producers could quickly conjure up more crude, those producers will also fill in the price gap with the 20% tax; or, as Goldman Sachs so eloquently stated, the tax would provide "excess returns to domestic producers."

Unlike most sectors, high energy prices provide a massive boost to the green sector as companies look to streamline costs and seek out alternative solutions. Source Financial, Inc. SRCF and CSES Group raised $4.5 million to expand CSES's manufacturing capacity of its breakthrough refrigerant, alltemp.

Although CSES designed alltemp to be the world's first Montreal and Kyoto Protocol compliant refrigerant, tests performed at several Fortune 500 company facilities confirmed that the refrigerant reduced energy consumption by 20%, or more, without any loss in capacity.

CSES plans on increasing manufacturing capacity of alltemp to $100 million per month at its Oregon facility.

Cabot Oil & Gas Corporation COG was upgraded yesterday from "Neutral" by to "Positive" by Susquehanna and upgraded to "Overweight," by JP Morgan, which mentioned the Federal Energy Regulatory Commission's authorization of Cabot's proposed Atlantic Sunrise pipeline.

The pipeline, operated by Williams Partners, and its 850 million cubic feet per day capacity should primarily service Cabot's approximately 200,000 net acres of Marcellus Shale production.

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