Monday, September 11, 2006
Sector Spotlight: Energy
Today, the markets appear to be rolling over. Also, the energy sector is now crashing through the floor (-2.5%).
This is not good.
I know many of you feel lower oil prices are good for the overall market, since the consumer will have more money to spend on Timmy's Christmas presents. However, I disagree.
Over the past 2-3 years, Wall Street has gotten rich off oil. As a result, Mutual funds, Hedge Funds and the individual investor overweighted energy; now, they are left holding the bag.
Trust me when I say, many people out there are hurting in a BIG way, as stocks like SU, GMXR and VLO get fucking raped.
I feel the markets will not recover from the breakdown in energy, unless a new sector takes the leadership position. Furthermore, even if that happens, it will not occur overnight.
Bottom line: The markets will likely see lower prices.
NOTE: The semi's. led by FSL, are trying to make a stand here, +.8%. I can't buy into the semi silliness. I will be increasing my short in SIRF.
NOTE II: Please take the new "Fly Survey" on the left hand side of the page. Are you bullish or bearish?
The following stocks have absolutely no mojo:
MIND -12.4%
BMD -12.1%
PDRT -10.4%
BQI -9.5%
NGS -8.9%
DK -8.4%
PLLL -7.9%
GDP -7.9%
ALJ -7.5%
DRQ -7.5%
SU -6%
NGAS -7.1%
This is not good.
I know many of you feel lower oil prices are good for the overall market, since the consumer will have more money to spend on Timmy's Christmas presents. However, I disagree.
Over the past 2-3 years, Wall Street has gotten rich off oil. As a result, Mutual funds, Hedge Funds and the individual investor overweighted energy; now, they are left holding the bag.
Trust me when I say, many people out there are hurting in a BIG way, as stocks like SU, GMXR and VLO get fucking raped.
I feel the markets will not recover from the breakdown in energy, unless a new sector takes the leadership position. Furthermore, even if that happens, it will not occur overnight.
Bottom line: The markets will likely see lower prices.
NOTE: The semi's. led by FSL, are trying to make a stand here, +.8%. I can't buy into the semi silliness. I will be increasing my short in SIRF.
NOTE II: Please take the new "Fly Survey" on the left hand side of the page. Are you bullish or bearish?
The following stocks have absolutely no mojo:
MIND -12.4%
BMD -12.1%
PDRT -10.4%
BQI -9.5%
NGS -8.9%
DK -8.4%
PLLL -7.9%
GDP -7.9%
ALJ -7.5%
DRQ -7.5%
SU -6%
NGAS -7.1%
Comments:
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I noticed the energy thing too. Have you noticed the metal stocks? Gold and silver is down hard today. Gold under $600, silver almost under $11.
Not a good sign. Voted "bearish".
You shorting energy or gold? I'm shorting ethanol.
Not a good sign. Voted "bearish".
You shorting energy or gold? I'm shorting ethanol.
Contrarian play:
My new poll is already 8 bearish - ZERO bulls.
Just two weeks ago, 62% of my readers were bullish.
Head scratcher.
My new poll is already 8 bearish - ZERO bulls.
Just two weeks ago, 62% of my readers were bullish.
Head scratcher.
I think it's because the market was down today at that point, and your post was already bearish. Market is actually doing okay- it's just oil/energy and metals that stink right now.
...Dow almost green?! That was fast.
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...Dow almost green?! That was fast.
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