iBankCoin

The Rally is Coming

Greece will be tossed into an elevator shaft, forced to take billions and fuck its populace, in order to prevent write downs at French  and German banks. Portugal is a stupid country and will be told so by snobbish poets vacationing from France. And, Benjamin Bernanke is going to empty his pipe ashes on the heads of those who bet against him.

My top picks are CLF, OXY, WNR, CVI and OPEN.

Why do I like the refiners so much, specifically WNR?

Well, for one, 321 crack spreads are north of $25 per barrel, up from $10 earlier this year. Secondly, WNR refines crude from El Paso and sources from Eagleford shale and Cushings. With regards to Eagleford, it’s the next big thing. All of the players are buying up acreage and WNR is in the sweet spot for getting its crude. The major advantage lies in the lack of proper pipeline infrastructure from Eagleford to the Gulf. At the present, there is no pipeline and one is not expected to be built for at least another 2 years. Because of the logistics, Eagleford crude sells at a significant discount to Brent crude. That’s the kicker. As long as the spread between WTI and Brent remains high and WNR can resist the temptation to hedge themselves out of a boom, they will mint money.

Frankly, I cannot think of an easier play.

Let me be clear: I am looking for a sharp relief rally, not some long term nirvana. After I get my spike, I might rejigger and get the fuck out.

NOTE: I’ve been watching TNAV go up since $13.50 and have not bought a single share. I hate myself for it.

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41 comments

  1. EXK challenged
    EXK challenged

    1st

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  2. A Monkey with a Tico Hat comma 37 Speed Bicycle with AM/FM/DVD and Funky Ass Spinnaz
    A Monkey with a Tico Hat comma 37 Speed Bicycle with AM/FM/DVD and Funky Ass Spinnaz

    2nd

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  3. drummerboy

    the rally is coming,so shall my boner fied wnr

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  4. xxxHuggieBearxxx
    xxxHuggieBearxxx

    not sure…might bounce off 1280

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  5. The Fly

    Watch silver

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  6. J

    This thing won;t fucking bounce until the banks stop falling. This looks ominous from the stand up of the banks. IT may mean the market thinks they need more capital.

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  7. inittohitit

    I checked out TNAV when you first mentioned it and have been sitting in it ever since. Good eye.

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  8. theedge111

    The financials are telling you something…RUN!!

    Moody’s downgrade on the big banks coming if I had to bet. Everyone knows they are insolvent and the stimulus money is running out. They will continue and drag the market down the toxic assets are dealt with.

    I have also noticed that stocks are selling off no matter what the dollar does. Another ominous sign There is a large shitstorm brewing.

    The price action in the financials are a giant red flag.

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    • Mr. Cain Thaler
      Mr. Cain Thaler

      The banks are in no position to cause another market crash. They were priced out back in ’09.

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      • J

        Cain

        they may not be able to cause another crash but they could cause the market to get really fucked up.

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      • 2+2=904

        banks couldn’t cause another crash huh? LMBO, let there be a single rumor that 1 of the big banks is going out and I think you’ll see how fast your theory is disproved.

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        • theedge111

          MArkets telling you they are in deep trouble. Stay long and strong if you like but housing is tanking once again and the banks are up to their eyeballs in worthless MBS/worthless bubble loans.

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        • Mr. Cain Thaler
          Mr. Cain Thaler

          What part of the last four years makes you think a single big bank will be permitted to fail?

          They will succeed over your dead body. Whatever my feeling presently of market intervention (or lack there of), if it looks like the banking sector is going to get routed, in a move to maintain control through monetary policy, the doors to the Fed will be thrown wide open.

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          • theedge111

            Because the money isn’t there to support them. The government is hemmoraging cash. Deficits are becoming a large problem.

            Not saying they fail. I would suspect nationalized.

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      • arizonaborderguard
        arizonaborderguard

        A 50% haircut is just as devastating no matter what pps is.

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    • discoordinated

      Yeah, the banks may drag us down a bit, but really BAC isn’t a 50$ stock any more C is pennies. A lot of their ability to kill this market has been priced in I think.

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      • 2+2=904

        Stupid, the banks aren’t some dumb retail outlet or tech stock – they do more than cash your small paycheck. If a major bank goes under there are broader consequences that will without doubt cause a tsunami in the markets.

        The good thing the comments section does is illuminate how ignorant people are.

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  9. J

    This is sure going to help put a bid in the market , Mr Fed official.

    “UPDATE 1-Fed’s Plosser: jobs data doesn’t change view
    Reuters – 1 hour ago
    By Ritsuko Ando and Kristina Cooke HELSINKI/NEW YORK, June 6 (Reuters) – Weak jobs figures on Friday do not change the fundamental outlook for the US economy and monetary policy could be tightened by the end of the year….”

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  10. Surplusdroids

    Relief rally coming. Managers will allocate incoming money from 401ks and pensions. (forced to.)
    Some of the pigmen will decide through the beating of data. “This shit is just too damn cheap”.
    I am inline with the good doctor. (Just a spike.)

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  11. go2mars

    To summarize the Libya thing:

    1) Gadaffi invests sovereign money with Western Banks.
    2) Western banks simoultaneously swindle him/Libya of billions.
    3) Gadaffi says “fuck this western system, we will be paid in gold/hard assets for our oil, and use gold dinars as our national currency in accordance with the koran.”
    4) Obama kills his kids and bombs the shit out of Libya, sending it back to the stone age for trying to protect/preserve the income from its oil.

    Did I miss anything?

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    • J

      Yes

      5. Goldman Sachs orchestrates the whole thing.

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      • A Monkey with a Big Ole USA Flag on a Pole
        A Monkey with a Big Ole USA Flag on a Pole

        USA! Fuck Yeah!

        Ask any soccer mommie, “The most peaceful country in the world”

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        • Cascadian

          What does Portugal have to do with it?

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          • go2mars

            Not unlike most nations on this here planet, the same international banksters are trying to inflate the Portuguese debt to levels that are impossible to pay back. Once well beyond the point of no return, rather than doing the right thing and defaulting on the debt (Iceland style), the banksters will find a corrupt politician (someday) who will start selling national assets in-lieu of the debt; their gold, their future taxes, and their freedom/sovereignty.

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  12. lol

    Time to sell SKF 🙂

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  13. Cascadian

    Maybe dropping the motorcycles but staying involved.

    >>In an effort, perhaps, to be part of the solution, Best Buy announced earlier this year it will start selling home charging stations for electric cars from Ford and Mitsubishi. In this effort, Best Buy is partnering with Eaton Corp<<

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  14. jk

    Portugal is a stupid country….classic

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  15. Mick

    is rally coming today or in July ??

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  16. TraderCaddy

    Made a few $$ scalping SMH long.
    Probably done for the day because of lack of concentration as my son plays 36 holes today in Atlanta area in last stage of US Open Qualifying.

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  17. rookie

    i dunno fly, this bounce is looking pretty anemic… where did all the bulls go??? market feels different, no doubt.

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  18. Jimmah

    it is going to destroy you all

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  19. Trading Nymph

    Ain’t no party like a West Coast Bear party…..Actually, if bulls want to make a stab at all of this they have to hold support in the eur/usd at 1.4600 which it is hitting right now. My little US Dollar is trying to move up but going into the 74.00 resistance it may need some side to side movement before the little one does it. Bottomline, still a recovery day for us bears after a good party on Friday…oh, keep an eye out for a rate hike out of China tonight…that is the gossip.

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    • Cascadian

      Is this the best the bears can do? Seems weak to me.

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      • Trading Nymph

        Cascadian…We are resting, with the ECB, RBA and BoE there is a lot of running we may have to do this week. Just like a good marathon…we have to pace ourselves..

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  20. Buzzy

    Roto WNR thats the name and away goes twubble down da drain. Roto WNR.

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