I knew this would happen. The contrarians are attacking, for the sake of their fucked high yield bond books of course. Both Barclay’s and JP Morgan are defending crude here, pointing towards 2016 as the bottom in crude. All is well. Nothing to see here.
“Our overweight recommendation for the sector is clearly a non-consensus call with elevated credit spreads, an expected double-digit default rate next year, high short-interest and the Street’s stock ratings are the lowest in more than 10 years,” Lakos-Bujas, JP Morgan
Markets are being whip-sawed today with the price of crude.
This tight correlation between NASDAQS and crude offers opportunity for fast fingered traders. The play is simple: if crude spikes, get long some QQQ or your favorite NASDAQ stock. Or, if you’re super aggressive, buy FCX in anticipation of a rally. Should we rally with crude, the beaten down commodity names, like FCX, CHK and X will rally the most.
If you enjoy the content at iBankCoin, please follow us on Twitter
They must have read my comment in OA’s blog that I am 1/4 of a one percent position long oil!!!!!
They get confused that you own DWTI and UWTI at the same time though.
I think the only oil and gas stock to nibble or buy is KMI and their 84k miles of pipeline that would circle the earth 3 times as you wait for prices to recover?
KMI just cut their div to 12.5c