Today we outperformed all of our tracking indexes with the exception of the NYSE energy index (we gained 0.29% to NYE.ID’s 0.52%). Energy was propelled higher today on a bullish EIA short term energy report (issued once each month – the next release is February 7th). This report detailed unexpected supply shortfalls, but demand was within the expected range. Natural gas production fell 2.51% throughout 2016, but this is expected to reverse over the next two years.
The Short Term Energy Outlook (STEO) report also came with a weekly energy storage report detailing a loss in Natural Gas storage that send our holdings in NRG Yield up 6.03% in trading today. We maintain no plans to close this position – we expect 2017 to see further gains for this relatively new issue.
Our second most gaining position today was in Coty Inc. (COTY) – up 2.03% in trading. We believe that this was due to technical conditions, and will continue at least for the rest of the week. Last week this stock exhibited decreasing volatility indicative of a breakout, which finally came today. This should propel the price higher for the time being, and may even be sufficient to drive it into our target price ahead of schedule.