As gas prices here in the Bay Area approach $7 per gallon, it is clear that energy is at record high levels. Here we see my entire history of the continuous contract for crude oil:

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The crucial price point right now is $116.64. Break above it, and we get another leg up in prices. My intuitive is that this breakout won’t happen (not scientific, I realize, but there ya go) so I’ve loaded up on energy-company shorts.

(Click on image to enlarge)