Fine. Give it to me. It is a well deserved lashing, getting all ecstatic over ‘canes and oil rigs. Sometimes I can’t help myself. Anyone who is lucky enough to know me is aware of my obsessive/compulsive behavior towards hurricanes and how they affect oil rigs.
However, many of you gay people out there, who are short oil, didn’t expect the market to rip higher like this, did you?
See, you may have your little thesis, written down in a pink Hello-Kitty book, somewhere, that states: “when the economies of the world are weak, oil shall trade down.” I’m sure you kept that page bookmarked, and sprayed with bubble gum perfume, right? But, the market is not reflecting that.
Instead, we are trapped inside a stupid “Bernananke box,” where the destruction of inflation somehow means jobs will be created and people will buy Coach bags, ad nauseum.
Personally, I like oil men. I have lots of oil men as clients. They know how to throw a party, let me tell you.
The knee-jerk move here is to buy the oil dip. However, I never like to buy into this type of blood, while already underwater. Instead, I will direct new capital to my new trade: long [[SKF]] or Equinix, Inc. [[EQIX]] .
Also, just for fun, I’ve been buying [[FXP]] , which also gets me short PetroChina Company Limited (ADR) [[PTR]] and CNOOC Limited (ADR) [[CEO]] —making it an effective hedge against my egregious oil longs.
NOTE: There are more hurricanes coming. I promise.
Comments »