Oil stocks are crushing to the upside this morning, off an astounding 5.5% move in WTI. Some will tell you that the 4/17 OPEC meeting, which might impose a production freeze, is the catalyst. Truth is, there are no real reasons for these moves. It’s simply a matter of liquidity, sloshing in and out of assets.
Traders are making bets, just like with horses or Pete Rose baseball games, that XYZ will be able to restructure its debt and survive at $39 WTI.
This is silly poppycock. Hardly any small, marginal, players will thrive at $39 WTI. Then again, maybe WTI will trade back to $60 soon?
Right or wrong, that’s the bet now.
People remember the gains enjoyed the last time crude bottomed in the $30s–back in 2009. They want to repeat that glory.
You can’t blame people for dreaming.
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F $%k Yeah! ?
Problem is earnings will win out in the end. Market is too high for me, better to wait until May selling to buy anything which could be 2 weeks early as the smart money gets in front of curve. Just my opinion.
Crazy
WE LIT