Refiners Back in Focus

854 views

With this morning’s move lower in WTI crude, the Brent-WTI spread is now more than $10 again. Just a short while ago Brent traded at a discount to WTI, causing many to flee the refiners, scared of their own shadows. However, now that the spread is widening again, Mid-continent refiners are back in play, the rage of Wall St.

As such, Goldman Ball-Sachs upgraded DK this morning. I expect all refiners to trade higher today, and for many weeks to come, which is why I went long ALJ on Friday (time machine).

Other refiners worth exploring are ALDW, TSO, HFC, WNR, PSX, MPC and CVI.

As for ALJ, with 29% of the shares sold short and spreads widening again, I predict extreme hardship for those embedded in a bearish position here. The stock can easily rise to a level seen just 6 months ago, or $17.

6 Responses to “Refiners Back in Focus”

  1. 1st time I’ve seen WNR WNR chicken dinner even trade in premarket for weeks. 100 shares but hey, still nice to see. Obviously due to this post!

  2. Key technical level on the spread here at -10$. Could bounce a bit. A firm break opens -15$.

  3. Everyone else seeing 50%+ short interest in WNR?

Comments are closed.
Previous Posts by The Fly

Refiners Back in Focus

854 views

With this morning’s move lower in WTI crude, the Brent-WTI spread is now more than $10 again. Just a short while ago Brent traded at a discount to WTI, causing many to flee the refiners, scared of their own shadows. However, now that the spread is widening again, Mid-continent refiners are back in play, the rage of Wall St.

As such, Goldman Ball-Sachs upgraded DK this morning. I expect all refiners to trade higher today, and for many weeks to come, which is why I went long ALJ on Friday (time machine).

Other refiners worth exploring are ALDW, TSO, HFC, WNR, PSX, MPC and CVI.

As for ALJ, with 29% of the shares sold short and spreads widening again, I predict extreme hardship for those embedded in a bearish position here. The stock can easily rise to a level seen just 6 months ago, or $17.

6 Responses to “Refiners Back in Focus”

  1. 1st time I’ve seen WNR WNR chicken dinner even trade in premarket for weeks. 100 shares but hey, still nice to see. Obviously due to this post!

  2. Key technical level on the spread here at -10$. Could bounce a bit. A firm break opens -15$.

  3. Everyone else seeing 50%+ short interest in WNR?

Comments are closed.