Pure gasoline has its greatest day in 4 years… an arctic blast throughout the nation… why the chance is far greater… Eric Fry’s high inventory… how one can catch a free replay of “Prediction” 2026
As I write Wednesday afternoon, shares are rallying sharply after President Trump introduced he and NATO Secretary Normal Mark Rutte have “fashioned the framework of a future cope with respect to Greenland.”
The aid comes from Trump saying that on account of this negotiation, he would not impose the punitive tariffs on European nations that have been set to start February 1.
As I write, particulars in regards to the framework settlement stay unclear. However the announcement marks a surprising reversal within the ongoing controversy over Trump’s efforts to accumulate Greenland for the U.S.
In yesterday’s Digest, we dove into Trump’s curiosity in taking management of the Danish territory. His current statements had amped up international geopolitical fears, with Trump threatening 10% tariffs beginning subsequent month – escalating to 25% in June – on eight NATO nations that had elevated their army presence in Greenland.
That uncertainty triggered yesterday’s selloff, the worst day for shares since October 10. However earlier at this time, throughout his speech on the World Financial Discussion board in Davos, Trump mentioned:
I don’t have to make use of pressure. I don’t wish to use pressure. I gained’t use pressure.
That remark sparked an preliminary aid rally. Then got here this afternoon’s announcement of a “framework” deal, sending shares even increased.
We’ll hold monitoring this story because it develops. However for now, markets are glad once more.
And there’s one market particularly that’s very glad…
Pure gasoline costs are surging on the again of chilly climate gripping a lot of the nation
I don’t use “surging” frivolously.
Have a look at what’s taking place on this one-year chart for the worth of pure gasoline.
Supply: Buying and selling Economics
Right here’s CNBC from yesterday:
Costs surged 25%, or 78 cents, to $3.89 per million British thermal models by 10 a.m. ET, placing pure gasoline futures on tempo for one of the best day in 4 years.
Costs are up one other 20% right here on Wednesday.
Legendary investor Louis Navellier flagged this in yesterday’s Growth Investor Flash Alert podcast:
Pure gasoline costs are up fairly a bit as a result of it’s chilly within the Northeast and Midwest, and that chilly has prolonged into the South, affecting locations like Atlanta.
So, as a result of we have now large metro areas chilly proper now and the chilly might persist for some time, pure gasoline costs are up.
“Chilly” doesn’t fairly describe it – it’s actually chilly.
In response to the Nationwide Climate Service, wind chills may hit -50 levels Fahrenheit throughout the Higher Midwest and Northern Plains. By Sunday, that sub-zero climate system is anticipated to broaden into the Ohio Valley, then the Northeast.
However in keeping with Eric Fry, this short-term weather-driven spike in pure gasoline costs is just the start of a a lot greater story
In his 2026 forecast for Fry’s Funding Report, Eric – our macro investing professional – highlighted a number of structural tailwinds that ought to hold pure gasoline costs elevated, and natural gas stocks climbing, all year long.
Right here’s Eric:
The USA has develop into the world’s largest LNG exporter.
LNG vegetation alongside the Gulf Coast now take in greater than 14% of complete U.S. pure gasoline manufacturing, and ship it to locations in Europe and Asia.
As soon as an LNG facility begins up, its demand doesn’t fluctuate with seasonal climate circumstances. It pulls gasoline like a vacuum cleaner, nonstop, year-round, so long as a hefty worth differential exists between expensive European gasoline and low cost U.S. gasoline.
Add in surging demand from AI knowledge facilities – which may increase demand for pure gasoline by 20% to 45% over the following 5 years – and you’ve got a recipe for sustained increased costs.
So, how do you play it?
For a simple one-click choice, take a look at XOP, State Avenue’s SPDR S&P Oil & Fuel Exploration & Manufacturing ETF. It holds a handful of oil/gasoline heavyweights, together with Exxon (XOM), Occidental (OXY), and ConocoPhillips (COP).
For those who’re searching for a extra concentrated guess, one among Eric’s high picks is Devon Power Corp. (DVN), one of many main producers within the Delaware Basin.
For years, Devon’s pure gasoline has been “stranded” – trapped by inadequate pipeline capability. However two main pipeline tasks are altering that equation. The Matterhorn Specific got here on-line earlier this 12 months, and the Blackcomb Pipeline will enter service within the second half of 2025.
Collectively, these pipelines give Devon direct entry to premium Gulf Coast pricing and to the booming LNG export terminals.
Regardless of these enhancing fundamentals, Devon trades at lower than 9 occasions ahead earnings – barely half the valuation of the common pure gasoline inventory.
As Eric places it:
When traders cease pricing Devon as a stranded-gas downside and begin pricing it as a beneficiary of a higher-floor natural-gas regime, the inventory will advantage a meaningfully increased a number of.
It seems to be like traders are starting to make this pricing adjustment. As you may see beneath, DVN is up 10% during the last 9 days whereas the S&P has fallen 1%.
Eric says that Devon is a “Purchase” beneath $45.00.
To maintain up with all of Eric’s newest pure gasoline analysis and updates on DVN, click here to learn about joining him in Fry’s Investment Report.
In the meantime, Luke Lango says 2026 may very well be the breakout 12 months for house shares
Let’s flip to house.
In response to our hypergrowth investing professional Luke Lango of Innovation Investor, three main catalysts are converging to create what he calls a “uncommon and bullish setup” for space stocks in 2026.
First, there’s the White Home Area Govt Order signed in mid-December, titled “Guaranteeing American Area Superiority.”
It units arduous deadlines: a crewed Moon touchdown by 2028, a business pathway to switch the Worldwide Area Station by 2030, and a mandate to shift authorities contracts towards “commercial-first” procurement.
Right here’s Luke on why this issues:
That is necessary as a result of the quickest method to create winners is to vary how contracts are awarded.
When Washington shifts from cost-plus, bespoke contracting to commercial-first, fixed-price fashions, a unique set of firms begins to win.
Second, there’s the emergence of what Luke calls “Area AI” – the concept of orbital knowledge facilities.
It sounds absurd till you notice that Nvidia (NVDA) is already profiling startups pursuing space-based knowledge facilities. Alphabet (GOOGL) is partnering with Planet Labs (PL) on “Undertaking Suncatcher” to launch space-based Google AI knowledge facilities by 2027. And Tesla (TSLA) CEO Elon Musk has talked about utilizing SpaceX to supply orbital computing for his AI firm, xAI.
Again to Luke:
We’re witnessing the beginning of Area AI, the following multi-trillion-dollar {hardware} supercycle.
The ‘AI Energy Wall’ on Earth is forcing hyperscalers to look towards orbital knowledge facilities for inference and radiation-hardened edge computing.
Third, there’s the potential SpaceX IPO in 2026 – which may elevate $25 billion-plus and worth the corporate above $1 trillion.
Luke believes this occasion would “re-rate the complete house sector in a single day,” very like Tesla’s success legitimized the broader EV business.
What’s the portfolio motion step?
Luke highlights Rocket Lab (RKLB) as a high alternative.
The corporate simply landed an $805 million contract in December to ship 18 missile warning satellites – its largest deal but, almost 50% bigger than its total 2024 income.
By the way in which, an enormous “congratulations” to Luke’s Early Stage Investor subscribers. After entering into RKLB again in June 2022, they’re up 1,002% as I write on Wednesday.
Luke additionally factors to Planet Labs (PL), which secured a $260 million contract from Germany in July 2025 and noticed its contract backlog surge 245% 12 months over 12 months. The inventory is up over 477% during the last 52 weeks.
Luke’s backside line:
For those who’re searching for a method to hold taking part in AI upside whereas everybody fights over the identical knowledge heart trades… house is a pure new looking floor.
For Luke’s full evaluation of the Area AI alternative – together with the small firm he believes sits on the heart of this trillion-dollar disruption – click here to watch his latest briefing.
Lastly, in the event you missed Keith Kaplan’s “Prediction” occasion yesterday, the replay is out there now for a restricted time
Yesterday morning, TradeSmith CEO Keith Kaplan hosted Prediction 2026, the place he unveiled the corporate’s breakthrough Seasonality device.
This next-gen buying and selling device is anchored in a easy however highly effective perception: hundreds of shares present traditionally dependable home windows – particular occasions of 12 months after they are likely to rise. Keith calls them “inexperienced days.”
TradeSmith’s software program identifies these patterns with outstanding precision throughout roughly 5,000 shares – right down to the precise day.
Take Goal (TGT). Over the previous 15 years, between June 22 and July 21, the inventory has risen a mean of 5.2%, climbing 100% of the time. In 2025, it gained 10.3% throughout that window.
These aren’t one-off patterns. In an 18-year backtest, TradeSmith’s seasonal buying and selling system generated 857% complete development – that’s greater than double the S&P 500’s return over the identical interval.
Throughout yesterday’s occasion, Keith walked by way of how the system works, why these patterns persist, and – most necessary – why January 28 is a essential date to observe as new seasonal home windows are prone to be opening up.
Click here for all these details and to see the Seasonality tool in action.
We’ll hold you up to date on all these tales right here within the Digest.
Have a superb night,
Jeff Remsburg
