Monday, July 02, 2007
Dollar Weakness=Buy Commodity Stocks
To me, the no brainer trade, off of wheel barrow dollar weakness, is to stay long the metals and oils.
Just in case you are new to this planet, when the dollar goes lower, dollar denominated commodities go higher.
True story.
With that being said, I can't help but think VLO is a screaming buy here, up to $80.
Additionally, I like my chances with RS and other metal stocks.
Keep in mind, higher oil prices should not be ignored as a non event. There will be a material effect on the consumer and restaurant goers.
So, it makes sense to hedge the higher oil price via staying long high quality oil stocks.
Natty is more of a hurricane play and seems like dead money, as of now.
Just in case you are new to this planet, when the dollar goes lower, dollar denominated commodities go higher.
True story.
With that being said, I can't help but think VLO is a screaming buy here, up to $80.
Additionally, I like my chances with RS and other metal stocks.
Keep in mind, higher oil prices should not be ignored as a non event. There will be a material effect on the consumer and restaurant goers.
So, it makes sense to hedge the higher oil price via staying long high quality oil stocks.
Natty is more of a hurricane play and seems like dead money, as of now.
Comments:
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commercials are very net short crude . seasonality is in its favor but it may have a hard time moving too far without a hurricane or geopolitical event ... i think the drillers are better here than VLO ... but I ain't FLY
no way that supposed bearishness is having any effect right here .. the dollar has gotten crushed in 2 short trading days .. I wouldn't bet on any reversal right here other than some dead cat double bottom bounce ... but stops are gonna be triggered soon enough & I think the dollar makes fresh lows before the dead kitty bounces ... so FLY's advice on commodities will work if thats the case & it looks like thats whats happening .. people are betting on fresh lows by buying these stocks today .... imwo
dollar weakness will continue
currencies usually move in long term trends, i.e. global fiscal policies take time to implement and time to change.
trading effects are short term
macro forces determine long term trends
you simply can't be a knee-jerk contrarian on currencies because "everyone" is bearish
currencies usually move in long term trends, i.e. global fiscal policies take time to implement and time to change.
trading effects are short term
macro forces determine long term trends
you simply can't be a knee-jerk contrarian on currencies because "everyone" is bearish
Is this talking about MVIS's projector?
http://www.uberphones.com/2007/07/others/cellphones_to_come_with_projector/
http://www.uberphones.com/2007/07/others/cellphones_to_come_with_projector/
Survey Shows oil may rise next week on Supply risk...
http://www.bloomberg.com/apps/news?pid=20601085&sid=aPuwxWxhPUT8&refer=europe
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http://www.bloomberg.com/apps/news?pid=20601085&sid=aPuwxWxhPUT8&refer=europe
# posted by 
: 7:28 AM
: 7:28 AM << Home
