Tuesday, November 28, 2006


Sector Spotlight: Energy

So far, I don't like what I am seeing in the market. There is a lot of red in leadership tech names, particularly in the Semi's. However, I am also scared to go short, because of the asshole dip buyer. So, the only thing left to do is reduce my long exposure and buy oil.

Many people I know feel buying oil is almost as good as hedging against the market. As many of you know and understand, if oil keeps pressing higher-- the general market will react negatively, yet oil stocks will trade up. This exact scenario played itself out over and over in 2005.

Bottom line: Buying VLO may be a chickenshit way of hedging against a Tech decline. We will see.

The following Energy stocks have mojo:

BQI +6.4%
GGR +6.2%
TTES +5.2%
GMXR +5%
MGPI +4.3%
HES +4.3%
DWSN +4.2%

Chinese financials are selling off, I figure it's just the beginning of a correction. Bad press today, analysts running away. Way overdue. I'm short LFC now. It would be a good time to lighten up on FXI, IMHO - they're 8% exposed to LFC and 20% exposed to financials.

You have a view on solar (STP/ESLR/SPWR) here? I own some and figure they're bound to go up by the time ocean levels have risen 30 ft ... ;)

covered SIRF/UTSI, maybe early. Surely you have some short recommendations on techs so hopelessly beyond remediation even the dip buyers won't take 'em? TRID? XING? <- currently my favorite B.S. runup/selloff stock...
Sirf looks like 26.
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