Republic Risk: Welcome to the Upstream

Let's start the week with a simple trade you may know well. Newcomers... this is our favorite trade in the energy space.

Dear  Fellow Expat:

It turns out that the secret to ensuring my daughter stays in bed past 7:30 am…

Blackout curtains.

Over the weekend, we switched my office to the guest bedroom.

My daughter has a habit of sleepwalking into the bigger queen-sized bed in the guest room and wondering how she got there. I’m glad she doesn’t open the front door and set the alarm off. 

We start this week with the S&P 500 sitting at an all-time high.

Global liquidity is at a record high, but insider buying has collapsed. 

We will take a little walk this week away from the macro side of the equation.

We want to focus heavily this week on the energy sector. It’s fitting today that we just saw a headline suggesting that Diamondback Energy (FANG) will merge with Endeavor Energy (EDR).

This would create another powerhouse in the Permian Basin. 

Now, if you’re new here or you need a reminder, the energy supply chain has three subsectors: the Upstream, the Downstream, and the Midstream. 

We start this week in the Upstr…