Let’s Become Oil Men

Wed Oct 22, 2008 2:19pm EST 2

If I may be so bold and use one of Fly’s previous headlines.

To me it makes sense buying oil & gas into this shitstorm. You can use the simple approach and buy [[DIG]] like my man Donny, or you can pick from the rubble.

Looking at fundamentals only, here are the best plays:

Occidental Petroleum Corporation [[OXY]] Best looking Balance sheet
Chevron Corporation [[CVX]] Highest Dividend
Apache Corporation [[APA]]
Devon Energy Corporation [[DVN]]
Petroleo Brasileiro SA (ADR) [[PBR]]
W&T Offshore, Inc. [[WTI]]
XTO Energy Inc. [[XTO]]
Southwestern Energy Company [[SWN]]
Suncor Energy Inc. (USA) [[SU]]
Denbury Resources Inc. [[DNR]]
Quicksilver Resources Inc [[KWK]]
Ultra Petroleum Corp. [[UPL]]
Exxon Mobil Corporation [[XOM]]
ConocoPhillips [[COP]]

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The Dollar is on Fire!

Wed Oct 22, 2008 1:53pm EST 4

Looking at the chart below it is obvious why we see the collapse in oil. But, how much longer can this last with the Gov’t printing billions upon billions of dollars?

Is this a head fake? or is the dollar for real?

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At the moment the futures are down over 100 points with Asian stocks getting merc’d. As I do my routine scans, I notice a similar pattern, everything is trading near the top range of the “famous triangle.”

This is a perfect opportunity for the bears to pick up the ball and run with it. I will keep things simple and play the downside with puts in the Russel 2000, [[IWM]] .