What An Impotent Correction

Although I continue to spite this rally of oil with all my heart and soul (but not US equities, no never those), I’ll be the first to admit that this “pullback” is not very impressive.

If this is the best that sellers can muster, then I will be clinging to these oil and energy shorts, impatiently hoping for redemption, for months longer still.

Just think, I may actually have held this short positions for a year, if I’m not careful!

Interestingly, I’m up for the year. But it just doesn’t please me. The gains are so little compared to what I lost in the final three months of 2011, just looking at their doleful size makes me want to punch my monitor. Once again, I was reminded the hard way; just say no to fall.

I should really close down my entire operation every year at Labor Day, leave my longs where they are, and let it ride. I’d save myself money and hardship.

But as poorly as 2012 is off to a start, I’m not as disheartened as I’m letting on.

Firstly, I like what I’m seeing in the uranium space. I own CCJ is size, and reaffirm my commitment to its glory, in front of every one of you. That miner is going on a run that will undo all my losses from last year, by itself. It’s just a matter of time.

Second, I love the multifamily REIT space still. And I own AEC and CLP; which are both under the guise of management that are taking full advantage of this climate. Their operations are clean and powerful, and best of all, undervalued thanks to sordid property prices. When the prices fall, these two companies, and others, will demonstrate performance that will leave every behind-the-curve fund manager clamoring for them to be on their books.

And finally, I just don’t think I’m off the mark with my shorts. That’s the only thing keeping me to holding them. I’ve lost a ton, but I keep going over the problems in my mind, rolling them over and peering at the different outcomes, and I keep coming up with the same answer: we’ve come too far, and nothing can be done to avoid a demand crash.

So I’ll stay patient. I’ll playfully cheer on those of you who are absolutely minting money right now – I do envy you, on some level. And I’ll sit and suffer those of you kicking sand in my face.

But I’m actually pleased to see some of you out and about, acting cocky. Your presence, rather than demeaning me, gives me a boost of confidence. A few of you invite death upon yourself with every waking moment. If people of your caliber are mocking me, it can be only a matter of time before I get retribution.

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