I’m down about 0.75% today, led by losses in WNR, LULU and DK. With regards to the refiners: they are being slaughtered due to Enbridge reversing the flow of oil from Cushing to the Gulf. Well, frankly, that shouldn’t result in this massive 50% drop in 321 spreads. This is yet another example of a monster trade being unwound. Anyone who was long Brent versus WTI is getting crushed. Anyone who was betting on 321 spreads expanding is being compressed. Once the dust settles and people realize that $15 spreads are traditionally rich, the stocks will settle down. However, I am not chasing them down here because irrational markets tend to stay irrational until the pain threshold is met. At this point, the pain may be only beginning.
Luckily, both WNR and DK make up less than 7% of assets.
On the other hand, gold and silver stocks are strong, despite weakness in gold and silver. RGLD, EXK and AG are all higher.
LULU is dropping in sympathy with a lot of retail names. ANF may have spooked the sector.
In the big scheme of things, with French yields now at 3.7%, this is a big non-event.
UPDATE: I sold out of DK. I kept WNR.
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Don’t worry about LULU (no MILF); they have a new line coming out for Christmas – red and green yoga pants lined with Elf jizz, well-noted for its health benefits and the rapid development of compact, elf-human hybrids.
You intended to buy dk at a lower price. But now yew are not a buyer? Thanks for gsvc tip. Hat tip to you on that monster loss.
Circumstances change. If you are unable to adjust to markets and admit being wrong, you should not be trading.
I’ve talked about GSVC 1,000 different times. I will not do it again.
I SOLD MY DK POSITION.
Now fuck off.
Give me a B! “B”
Give me an A! “A”
Give me an N! “N”
Give me another N! “N”
Give me an E! “E”
Give me a D! “D”
Master Fly, how about some NEM puts to protect yourself from JakeGint Fever?
Not for me.