Just a second ago I watched [[USO]] tick negative, WTF? However take a look at gas, steadily rising. Last night Chivas made an excellent point saying he’s looking at the refiners, I agree 100% and have been building a position in Valero Energy Corporation [[VLO]] over the last few weeks.
This morning I just made it my largest holding. I remember when Katrina hit I watched VLO & NOV move about 4 points a day– for a week.
Look no further than National-Oilwell Varco, Inc. [[NOV]] & Valero Energy Corporation [[VLO]] for your hurricane plays.
Note: VLO took control of the 50 MA this morning.
Disclaimer: The author of this post is heavily long VLO & NOV.
If you enjoy the content at iBankCoin, please follow us on Twitter
Note: Take a look at my solar positions: WFR, LDK, SPWR (on fire)
Just bought more VLO @ 35 and NOV @ 76.20
Don’t you know the contrarian wins here? Short oil and oil related stocks. USO to 0, it can’t hold any pathetic rally with all this ‘hype’. May I suggest a revision to your portfolio to more neutral delta with addition of DUG
SYMC BTFO!
RC
Any thoughts on FRM? Chart looks good.
You should see this, I keep adding more calls in VLO with every tick lower.
Sia, I have no desire to buy DUG whatsoever.
NOV building a beautiful flag on the 6mo chart, more juice for the breakout.
I hope you guys are taking advantage of this dip.
Crack spreads improving also – VLO is still just slightly above book value.
HERO has over 50% of its rigs in the path of Gustav The Mahler.
Most of their rigs are “jack-ups”, which, during a hurricane, get beaten mercilessly.
Hope they have good insurance.
Just thought everybody would like to know that.
Isn’t VLO located in the gulf region? And if so, wouldn’t FTO or TSO be better plays?
It’s all about the dollar (HOD) not the caine right now … but the dollar is like the new england weather.
Any thoughts on HLX for a play on rig damage in the gulf if the caine does regain momentum and strike the heart of the drillers?
DO also has rigs set up like bowling pins in the Gulf.
Employee8, I owned some VLO for the long term and added some TSO on today’s dip. Now, I’m going to sit around on my couch, watch TV and wait.
FRM looking good.
Don’t forget to short the airlines Boca … good opportunity here with the dollar up/oil down action to add to both FTO/TSO longs and CAL/ALK shorts …. still think the dollar is now the tail wagging the dog until the storm/s are for real …