Oil up nicely why the disconnect with most energy stocks today? I know the markets were lower but these stocks would rally even in a down tape recently. Has the trend changed and do investors know something going forward?
They have been selling into each close and I would expect the same today that's when you buy before the close today that's what I posted earlier today. It seems like it's happening again.
I think investors may actually be waking up to those facts instead of just piling in for the sake of piling in. In addition maybe hedge funds who were piling in are starting to wake up to the reality that oil is going lower. Like I said if Mr. Hamm needs to store some I have plenty of room in my yard.
That's what a lot of speculators have been doing however the glut is growing because the production levels of oil have not really gone down. They rave about the rig counts but what many are neglecting to say is that many of them are either the less profitable or smaller in size. If you are a driller which rigs would you idle first? Charles Biderman was on earlier this morning and made a great point (he follows the float of total shares and buying and selling) he is short oil as a contrarian play stating it is bearish signal when all these hedge funds are piling into oil when it is actually going lower. I tend to agree with him if oil does start to retest the lows these guys will be dumping again like they were near $100 and on the way down it tends to have a cascading affect on the price. Oil is going lower as each inventory number shows that we are still building supply. I love Hamm he was on earlier this morning once again touting that oil would be higher by March-April. I will believe that once it hits the low $40's again.
Absolutely I posted last night you buy late today they will drag it back down later I believe and I also said it would test the 52 week low it hit it earlier. They have to be poisoning their customers with their products to have this steep of a drop like this. The market is great at shaking out weak hands into a 60 Minutes type of event.
I keep saying these stocks will trade with the direction of oil. The algos and HFT's have been doing it for months now and it would appear not much has changed.
This along with others in the sector will trade almost each day with oil. The earnings were not stellar and got a one time boost to EPS from the sale of the hedges. Cost cutting was their plan on the CC. CLR will trade with the oil prices oil down big today so is CLR for now.
Hamm sure sounded different on the CC. Very rosy but then again he predicted when oil was $75 it had bottomed. I still believe his personal life got in the way and possibly should have taken some leave to get those matters in order. Sometimes a fresh face helps either way I still believe oil is not done going lower and CLR had the one time gain to boost EPS ( a big miss on EPS without it) this quarter what happens going forward other than cost cutting which they harped on during the CC. I still believe these stocks will follow oil each day and they are just trading vehicles for now unless they pay a dividend.
Situations like this usually create new lows in the last hour and most times in the last few minutes. That's what happened here with LL today.
You probably buy some tomorrow or Friday. It may be a reverse sell the news I'll bet the story turns out to be not as drastic as this selloff was. If so you will see this back near $57-$59 by Tuesday. When there is blood in the streets that's when you make money.