This is the kind of action I live for; action where I win both ways.
My stocks are up, led by strong performance in the REITs. And my shorts in ERX and UCO are both gaining today.
Really, so long as oil corrects back downward, I don’t care what the rest of the market does at all. I prefer a green stock market with bleeding oil companies. And that’s exactly what the market needs, if any of you want to see it break out to new highs.
Gasoline can single handedly derail this recovery, assuming it wasn’t coming unglued before now. It’s in your best interests to bet against energy prices here.
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Let’s look at this another way shall we. The day before the SPR release was announced, oil was at 94.45. Yesterday it closed over 97.
Yes, as much fun as I had boasting yesterday, my shorts are down.
Look, there’s a reciprical relationship here though. I really don’t think economic activity can persist right now with gas skipping around under $4 a gallon.
Don’t worry about $4 gas. The stock market is going up, everyone is rich as fuck. Wait about one or two months after the deluge of reports about people shooting others at gas stations for their unleaded fix then go short.
(laughter)