Oil and gas stocks are moving higher because folks like James Cramer suggested a new wave of consolidation might be upon us. WRONG. Today’s bump is because FCX is a ridiculously retarded organization. It’s equal to going to a grocery store and spotting a rotten piece of fruit, approaching the vendor and saying “excuse me Sir, how much for that rotten piece of fruit? (taps cane)” Meekly, the vendor responds, “well, it’s selling for $.80, but I might be able to do better.” The rich and extravagant man, named FREEPORT, responds, “no need good chap. I will give you $1.50 for that rotten fruit and while you’re at it, give me that half chewed apple in the corner as well. I’ll pay no more than $1.00 for THAT, however (mumbling to himself with victorious satisfaction).”
The meek vendor packs up the fruit and gladly accepts Freeport’s money, much to the chagrin of Freeport’s family who will now go without an Xmas turkey–because the old man spent all their money on two ruinous rotten pieces of fruit.
I’m not participating in this rally, just like most of you. Despite the greeness of the Dow Jones Industrial Average, breadth stands at a feeble 53%, hardly inspiring. Silver is getting poleaxed, and by extension, as am I. My largest holding is VHC and that’s holding up, but by a thread. SWHC is scheduled to report earnings tomorrow, so it’s pins and needles until then. My world as you know it is frozen in time, stuck in the amber that is being caused by an indecisive stock market–customary of the month of December.