This is no longer a laughing matter, for our dear friends, just east of Africa.
I went negative on crude because of the pervasive downside pressures to price action. I don’t have exact numbers, but know this: many, many contracts are tied to $60 crude. Should oil dip below $60, I am afraid it will cascade lower, much to the chagrin of the Saudi Royale [sic] family.
Stocks like Transocean Inc. [[RIG]] and National-Oilwell Varco, Inc. [[NOV]] will get the stuffing kicked out of them, if crude went sub $60.
Naturally, because we’re American idiots, we will stop exploration and get all happy and shit about gasoline in the low 2’s again. Howsoever, once the world economies come back online, we will be eating tar sands, as if they were pop tarts. Oil will super gap to $500 5 million dollars per barrel, due to an extreme lack of supply, estimated around 9% per annum—if we stop looking for damn stuff.
So, if I were you, thank God I am not, I would be shorting Petrohawk Energy Corporation [[HK]] and buying [[DUG]] , as if a clown was chasing after me with a pocket full of date rape drugs.
As an aside, the homos from [[M]] are quite chipper this morning. If any of you believe in America, you must own Macy’s, sub $12. Nevermind the perfume section or the flamboyantly gay cashiers: the stock is cheap.
Speaking of cheap: anyone interested in a little BE Aerospace, Inc. [[BEAV]] this morning?
I didn’t think so.
So, let’s wrap this up:
Oil: bad
[[M]] : gay, but cheap.
[[REW]] , [[FXP]] , [[DUG]] , [[SDS]] : good places to put your money.
Petrohawk Energy Corporation [[HK]] : die.
CLARIFICATION: For the retard variety who reads this blog, the $500 target on crude, is in fact, not a target at all. I wrote it to emphasize a point, which very few of you are capable of understanding.
Okay, get back to your hummers and oversized furnaces.
Comments »