WFR Update

MEMC Electronic Materials, Inc. [[WFR]] should be trading close to $70

Took profits in Petrohawk Energy Corporation [[HK]] , Nabors Industries Ltd. [[NBR]] , T-3 Energy Services, Inc. [[TTES]] , & Schlumberger Limited [[SLB]] –I am too leveraged.

I also noticed the models are moving the storm further east. I’ll keep you updated.

Update: The first picture shows the 8am update, notice the change a few hours later on the 11am update.

National-Oilwell Varco, Inc. [[NOV]]

Petrohawk Energy Corporation [[HK]]

Chesapeake Energy Corporation [[CHK]]

Nabors Industries Ltd. [[NBR]]

Schlumberger Limited [[SLB]]

T-3 Energy Services, Inc. [[TTES]]

Note: All call options with the exception of TTES. I will not go down without a fight.

T-3 Energy Services, Inc. [[TTES]] Thinly traded so be careful, stop below 200 day.

For the next week, my focus will be on energy and energy only. I have no desire to trade anything else as I feel we have a golden opportunity in front of us. Let me explain…

Given the fact that we have a major hurricane headed into the Gulf coupled with everything going on with Russia and Georgia, oil was barely up today. To me that signals the commodity wants to trade lower, (but at the same time has taken such a beating that it could bounce significantly).

This is a perfect scenario. Let’s say the cane misses the Gulf– everyone will be rushing for the exit sending oil prices below $100. Let’s say the worst case happens, and the cane heads straight for the rigs– we could easily catapult higher.

My focus will be to watch the weather more than the ticker. As of right now I am heavy in oil. Should the “deacon of death” move course, I will move course and switch all my efforts to shorting these same names. Should the cane miss, I believe there will be a better trade in shorting the group, they will DIVE!

I was speaking to Gio earlier today about this same scenario. He likes this trade, long Oil/Short Coal. This just makes sense, but I will have him explain further. Look for a post later tonight.

Note: I hear many say it’s wrong to profit from disaster, I call it a hedge on my life.

Need another Hurricane play? Try T-3 Energy Services, Inc. [[TTES]] , the company designs, manufactures, repairs and services products used in the drilling and completion of new oil and gas wells, the workover of existing wells, and the production and transportation of oil and gas.

The trade: The stock is sitting on the 200 MA, buy here with a stop below the 200.

Update on storm here.

I look at hurricane plays as a hedge against my own livelihood. If you’re wondering why I’m so heavy in energy at the moment, take a look at the picture below.

The way I look at it is if I get hit by a major storm I will benefit from a ragin’ account filled with call options. However, if it misses me I will take a few losses– but, spared from the deacon of death.

It’s a win-win in my book.