Seeing the price of crude down this morning reminds me to not overweight oil stocks. It’s important to have some exposure, due to the potential upside and beta that oil stocks represent down here. However, these are broken names, divorced from the ceremony of man, 100% fucked.
Remember that there are other sectors out there. You can delve into services, industrials, tech, utilities, consumer discretionary and staples. Don’t be a jackass; own a cross section of the economy and trade around it.
Once you come to the realization that taking your entire net worth and swing trading it is completely idiotic, you will build a portfolio and trade around it with swing trade ideas–like me. You cannot persist in this business by swinging around your account from 0% to 100% cash inside of a few trading days and expect to keep your sanity.
Futures are flat this morning. I still love airlines most, following by hamburger stocks. I hope you are paying attention to the erection commercials on CNBC and consider popping some of those bad boys through today’s trading session.
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HA, nice spot, airline exposure
VA
Disagree on the oil bit here – there may be more pain (I expect it personally), but if you’re in the right names and overweight them and sit back for 2 years, there is alpha opportunity here. And all airlines are extremely undervalued, particularly AAL. They’re going to kill it with oil sub 70.
A lot of MLPs also offer highly attractive risk/reward… Can collect 5-10% dividends growing 5% plus per annum at relatively cheap EV/EBITDAs vs. the past few years. Again, though, just got to be patient and stay away from upstream in particular as they are levered to hell and back.
$FB taking the blue pills, looking to get up here