On Second Thought…

Energy and technology are recovering... but China's problems continue to push into the headlines.

Action to Take: Futures are pointing higher again this morning, but recent sessions suggest patience is key as early gains have struggled to hold.

We’re short-term bullish on energy:

Since the election, energy has shown its first positive MACD crossover from oversold territory, presenting a compelling opportunity to build midstream positions. If the K-1 tax situation has kept you on the sidelines thus far, Tortoise Advisors (who managed our favorite midstream closed-end fund, TTP) still offers TYG, an energy infrastructure closed-end fund. With an 11% discount to NAV, it holds quality names like Energy Transfer (ET) and Enterprise Product Partners (EPD) while offering a 10.4% distribution.

You can view Tortoise Energy Infrastructure’s complete list of holdings by clicking here.

In addition, technology is recovering too - which is bullish for the S&P 500 on average.

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Momentum: Same story, different year: Markets started the day with early gains that faded as inves…