I know that term applies to many of you drug addict types. However, I am talking about the spread between gasoline and crude. At the present, the crack spread is above $15. Keep in mind, when Valero Energy Corporation [[VLO]] , Tesoro Corporation [[TSO]] and co. were hitting all time highs, the spreads were not much more than $20.
Needless to say, the refiners must be bought.
Once again, courtesy of “The PPT,” here is a list of refiners, sorted by percentage of shares sold short:
| WNR | Western Refining Inc (WNR) | 29.9 |
| TSO | Tesoro Corp (TSO) | 19.8 |
| SUN | Sunoco Inc (SUN) | 16.1 |
| SUF | Sulphco Inc (SUF) | 12.8 |
| FTO | Frontier Oil Corp (FTO) | 11 |
| HOC | Holly Corp (HOC) | 8.7 |
| PETD | Petroleum Development Corp (PETD) | 8.1 |
| XTXI | Crosstex Energy Inc (XTXI) | 7.3 |
| ALJ | Alon USA Energy Inc (ALJ) | 7 |
| VLO | Valero Energy Corp (VLO) | 2.6 |
| DK | Delek US Holdings Inc (DK) | 2.6 |
| CVI | CVR Energy Inc (CVI) | 2.6 |
| MUR | Murphy Oil Corp (MUR) | 2.4 |
| EPE | Enterprise GP Holdings LP (EPE) | 2.3 |
| CLMT | Calumet Specialty Products Partners LP (CLMT) | 1.8 |
| SYNM | Syntroleum Corp (SYNM) | 1.5 |
| HES | Hess Corp (HES) | 1.5 |
| MRO | Marathon Oil Corp (MRO) | 1.2 |
In other news, I now hate people who incessantly buy Wells Fargo & Company [[WFC]] and U.S. Bancorp [[USB]] . I am telling you now: I will track them down and have their mustaches punched off.
By the way, natural gas may spike hard here too, due the fury of Ike. My weather reports say Ike will bring a bigger storm surge than Katrina. If you think that can happen, get long [[UNG]] , Natural Gas Services Group, Inc. [[NGS]] , Arena Resources, Inc. [[ARD]] , GMX Resources Inc. [[GMXR]] , TXCO Resources Inc. [[TXCO]] , NGAS Resources, Inc. [[NGAS]] and Ultra Petroleum Corp. [[UPL]] .
Also, considering the amount of damage that may be done, take a look at BlueLinx Holdings Inc. [[BXC]] , Builders FirstSource, Inc. [[BLDR]] , Pike Electric Corporation [[PEC]] and The Shaw Group Inc. [[SGR]] —just to name a few.
Top pick: Western Refining, Inc. [[WNR]]
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USB has done nothing wrong. Remember when it traded down to $22 and I told you to get long.
LEH just hit 3 something trading 200 mil shares I wouldn’t jump into LEH now… but as Trading Mechanism give it a shot!
Every market move I’ve ever seen (up or down) has been led by leaders with strong fundamentals. I believe the problem with this market is our government is not allowing the market leaders to develop their potential for the next move forward. By stepping in front of the “real” market leaders and taking on their role the government is creating massive indecision.
Ben and Paulson don’t have the fundamentals to lead this market thus we inherit the coin flip casino.
There’s plenty of NG in inventory.
Carry trade still needs to unwind = strong dollar, cheap gas.
Hurricane Ike is for flamboyant gay people.
When you get the end-of-day rally but it’s not even noon yet, you fade that shit, right? Right.
Right on! Why don’t you pass it this way Angelo, fuck Paulson he can wait.
I am going to run over those rigs in the gulf faster than Schwartz or Fuld have ran their companies into the ground.
Just wait, fuckers.
excellent.
the storm surge is the killer.
Bernanke, you are dead to me!
Well, maybe not dead, but certainly seriously maimed and crippled.
I need your ass back in the politburo conference room. Now!
AIG is alarming.
FLY:
I told you to fix your little PPT machine.
ALJ is not 7 .. it is 32, Why do you think it is performing so well today like WNR ?
Your PPT machine is correct for all the others, but not ALJ. Oh well you can not expect Beta software to be perfect.
FCX at high of day, they gave that stock away yesterday.
meanwhile, Bill Miller is about to take a plunge.
Ah, great pic Jeremy 😀
I sold a shitload of AIG puts 2 days ago for a 500% plus gain, can’t imagine where I’d be right now. Maybe out buying a time machine. I’m never patient enough when I should be.
The Fly is God.
Fly you really think the refiners will be different this time than they were in Gustav? Remember the scalping that took place after the cane came through?
ok paulson, im about to get short GS with a stop at 158
dont pull and late day bullshit with your stimulus and shit
Hank,
I told you before your appointment that I am at the top of the totem pole. I work on my time. I will speak with you on Monday, in the meantime, I’ll be at The Hamptons.
Until then, Fuck Off!
Why can’t you release the PPT sooner? In this volatile market, we can always use more info. Are you going to blog there as well or is it just technical info?
The PPT is NEVER wrong
Outstanding: 46,814,021 Float: 45,510,747
Short Interest: 3,483,952 as of (2008/08/12)
Short Int Ratio: 6.3 % of Float: 7.7%
ALJ’s short percentage is 7.7%. Finviz is retarded.
Big Mike:
It’s not ready. It will own.
I want to make sure it is perfect. I will accept nothing less.
bye bye Bill Miller, low of the day.
Can we get an asshat award?
wtf?–you short GS and I’ll have Comrade Bernanke unleash a big Russian bear on you. No, wait. Bad idea about the bear.
….I’ll personally cut your balls off with a Lehman pen and pencil set.
PPT Member-Eat my goat cheese, asswipe! I answer to no one but the little voices in my head.
Hank,
I will be sending black helicopters to rollover your ass. Don’t fuck with me Hank.
I have to get back to Sandy, Charles, and Angelo. We’re going in for a dip this afternoon.
In the meantime, Fuck Off!
ALJ 32.2% short plus huge insider buying..
Fly:
Where does this PPT machine source its data feed from ?
Your data does seem to be right. Nasdaq.com agrees with you, and TDAmeritrade says 32% … somehow I do not feel like trusting TDAmeritrade right now.
Morningstar.
Either way, I agree, ALJ goes higher.