Last week Energy names where the Shorts Are Correct Rose by 21.54%. Short Squeezes in the energy patch rose 10.48% last week. Those returns are a week not a year.
Notable winners among the names where the Shorts Are Correct last week included $WLL up 82%, $NE 60% and $RIG 47%. This week is a different story.
$NE has fallen -16% since last Friday. $RIG -14%. Interesting that $WLL is higher by 13%. It is doing what it supposed to be doing. Many other energy names are not. Be careful if you are renting these P.O.S. names.
One of my long time buddies Ben Woodward puts together a list of stocks each day that he labels the Get The F#$% Out (GTFO) List. Produced mid day it was littered with Energy names.
The bottom line is Energy may have these short squeeze rallies over the next couple of years but the long term trends are not up for debate. Two charts below should scare the crap out of any oil man or oil investor.
The point of the charts is VERY simple. 2015 was an outlier in terms of inventory. Now 2016 is a huge outlier on 2016. Unless demand rises huge, and it cannot, then price has to come back down. This is Econ 101 Supply & Demand Curve Analysis.
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spectacular post !
bravo,
‘golf clap’