The David Lin Report · Friday, September 25, 2026
Despite rising bond yields, Keith McCullough advises being "long oil with both hands," noting that energy stocks were the only sector to rise the previous day. He sees a correlation between oil prices and the entire yield curve, suggesting bond yields could continue to climb.
“Um, I want to flip over to something that you said earlier, which is oil. Um, I think you told me offline you're long oil, is that correct? Now, it's easy to look at this chart that I have on my screen, which is WTI versus the, uh, the T-year government yield. Uh, and the blue line here and WTI is the, uh, the bar chart. Uh, it's easy to look at this and say, well, if you're long oil, you got to be short bonds. Because these two have just been moving in tandem. Like you said earlier, they've just been moving in tandem. Like you said earlier, you look at things holistically, you look at fractals, uh, and so. It tracks a lot of different things, but is it too simplistic to look at this and say, look, you're long oil, you got to be short bonds.”
“No, that, that, again, simplifying the complex is fractal math. So we call them similar sets. David, you take the rate of change and the conditional factoring of the oil price, uh, which is bullish trend, oil, bullish trend and trend in our vernacular, short-term and intermediate term bullish, uh, signaling higher highs. Okay?”
“So, you know, that was the big trade this week was just to, to grow up your oil position. And if you have that on, you can definitely see bond yields going higher.”