Friday, December 01, 2006
Sector Spotlight: Energy
If this doesn't stop, I will be forced to sell all sorts of long positions and go short, in a BIG way. But, considering my recent experiences, short U.S. equities, I think I'll wait until the market confirms a breakdown.
I still like the oil patch. Moreover, I feel it is the best way, aside from buying FXE, to hedge the dollar decline.
For now, prepare for lower stock prices.
NOTE: Within oil/gas. I like VLO, PTEN, UPL, SWN and NGAS the best.
The following Energy stocks have mojo:
Put on a dollar neutral paired trade: Long SPY, short IWM. The large cap SPY should get more benefit from falling dollar via exports than the small cap fuckers in the IWM. Additionally, small caps are richly valued relative to the SPY.
BTW, since when do stocks do well in a recessionary environment? I think your in denial, along with 80 percent of the rest of crowd. :)
Second, re "Treasurys rally on recession concerns so the fucktards bid the builders again."
What do you think of the Canadian Oil Stocks CLL and UTS? They both have solid holdings in the oil sands of alberta
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