iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,433 Blog Posts

Refiners Are Smoking Crack; Get Some

Just a quick note, since I have work to do.

Thirteen gulf refineries are still offline, causing gasoline to spike, while oil eats dirt—mainly for liquidation reasons.

In short, the profit margins for the refiners are rocking and rolling (sorry for the corny broker phrase), as the “crack spread” widens. Moreover, with Hurricane Ike on his way to slap around a few rigs named Tina, I bet the refiners will continue to run here.

Here is a list, courtesy of “The PPT,” of publicly traded refiners with a large percentage of shares sold short:

Western Refining, Inc. [[WNR]]: 29%

Tesoro Corporation [[TSO]]: 19.8%

Sunoco, Inc. [[SUN]]: 16.1%

Frontier Oil Corporation [[FTO]]: 11%

Alon USA Energy, Inc. [[ALJ]]: 7%

Valero Energy Corporation [[VLO]]: 2.6%

Delek US Holdings, Inc. [[DK]]: 2.6%

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23 comments

  1. FTK

    anybody got any comments on FTK? still poised for a leap?

    Fly, what does your “informed” guy say of FTK? he still like it

    it is getting the homo hammer

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  2. Greekpunk

    I just got Ike’s RSVP to the giant Gulf of Mexico bash on the warm waters off LA/TX. He’s planning on showing up Tuesday or Wednesday.

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  3. ABK is not a refiner – what’s it doing up over 20% today? Airlines are good for a little profit with oil down. Short covering in ABK is likely reason for rocket performance.

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  4. Rick Santelli

    You clowns have already got your arms torn off but trust me your legs and pepis are next fuckers.

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  5. Big Mike

    How much this PPT will cost the fellow poor’s man dollar?

    Some of these information are quite useful…

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  6. The Fly

    The PPT will be priced in Zimbabwe’s currency.

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  7. Ahhhhh

    aka…..Fly’s Brain

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  8. TraderCaddy

    Just curious if any of you daytrader fools (like me) use TRIN as an indicator. For example today the TRIN has been above 1 on every “rally” since about 9:50 AM indicating more volume movement towards declining issues.

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  9. BOOMER

    TC – plz explain. Not following you, but interested.

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  10. Aris

    TRINspa. helps your stocks lose weight.

    ps: anybody watching the mess that is MA today?

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  11. TraderCaddy

    BOOMER- The TRIN is also the Arms index and basically measures a ratio of …. Here is a link that explains it. Anyway, I keep it on my screen (symbol $Trin) as a short term indicator of the strength of the market. I have always found it to be fairly reliable but do use it in conjunction with other signals such as sector strength, rsi, etc. Since I daytrade only I like to see if it moves in conjunction with the averages and if it doesn’t then I figure it’s a false rally or decline.
    http://www.investopedia.com/articles/technical/02/102202.asp

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  12. Matt

    Adding some WEL @ 2.85
    I like the nice 3 day pullback from 3+

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  13. Employee8

    UDRL printing HOD on heavy volume for second day …

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  14. Donny

    How do people like Gordon Charlop end up on Wall Street?

    http://www.youtube.com/watch?v=WsjfmXSi0pQ

    Quote from Larry “asshat” Kudlow regarding the benefit to the consumer due to declining oil:

    “They’re gonna be able to service their mortgages more easily”

    These people live in boxes … they honestly do!

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  15. Matt

    “Boots & Coots continues to outperform as the Company reported record revenue for the third consecutive quarter. WEL’s International Safeguard and pressure control services led the Company’s growth in 2Q08 with prevention revenue growing 226% over 2Q07. The Company’s Response Segment continued to improve due to increased activity particularly in Africa and the Middle East.”

    “Flare ups in hot spots throughout the world continues to create a need for the WEL’s services. An indication that activity will remain strong in the Middle East was the recent announcement of a two-year, $15 million Safeguard and hydraulic workover contract in Libya, which will commence in the fourth quarter,” he continued.

    “With international activity remaining solid throughout West Africa and the Middle East, new projects in Asia, and expansion domestically, we continue to believe that the Company is being very conservative in its guidance for the remainder of 2008. At a current P/E around 13x, we continue to believe that the stock is very undervalued. Based on the Company’s recent second quarter results, we are maintaining our ‘Strong Buy’ rating on WEL,” Rapa concluded.

    There was also a nice insider buy at these levels a few days ago.

    Last but not least the breakout over 3 was a 5 year breakout and no garden variety breakout.

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  16. Prospectus

    John Carter goes over how he uses TRIN in his book “Mastering the Trade”. Basically, he doesn’t put any stock into the actual TRIN level in isolation, but just wants to watch what the trend of the TRIN is during the day. If the TRIN is making new lows, but the market is going sideways, then any breakout move in the markets is likely to be to the upside–that kind of thing.

    When daytrading the YM, I watch the NYSE advance/decline line the NYSE Tick, and the NYSE TRIN (in that order of importance) for confirming indications.

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  17. TraderCaddy

    Prospectus- Kind of sounds like what I do i.e use TRIN for confirmations, breakouts, etc. I also use the ADVQ/DECN. I have heard of the book. Is his book worth reading? If so I’ll check it out.

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  18. Prospectus

    @TC: I have read literally dozens of different trading books. A few have been worth reading. Unfortunately, there’s a lot of utter tripe to sift through, both on the net and in books.

    However, Carter’s book is on the short list of the very good ones, and I recommend it highly. Usually you get platitudes and generalizations mixed with some douchebaggery in a financial book, but Carter has lots of very specific info on setups and market internals, trading plans, etc. It’s like the Trader-X (RIP) of trading books–just tells you exactly how he does it, and then you can take it from there.

    NOTE: I have no affiliation with Carter, I just read his book and use it in my trading. Hope this helps.

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  19. TraderCaddy

    Thanks. I’ll check it out. The most enjoyable “stock” books I have read were Market Wizards and New Market Wizards. I have probably read them at least a dozen times each. Nothing to do with T/A but very enjoyable reading about the successful personalities.

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  20. Prospectus

    @TC: I second that. Also, “Reminiscences of a Stock Operator” about Jesse Livermore is a must read. He was a genius, but didn’t conquer his own psychology. Another one is “Trading in the Zone” by Mark Douglas. That one really turned my psychology around for the better.

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  21. Blue

    Fly,

    I like WNR, wondering how this will affect it going into Oct.

    “The big issue still facing Western is its huge debt, Kohler said. The company’s debt was $1.5 billion at the end of second quarter — a debt created by Western’s acquisition last year of Giant Industries.

    Western’s loan terms require it to reduce its debt by $250 million by Oct. 1, or the interest rate on its $1.3 billion term loan will increase substantially, Kohler said. The interest rate would increase 1.75 percentage points, a Western official reported. “

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  22. crude_oil

    FTK, Ive made several trades on ftk over the last few months.I will be a buyer if it drops any lower.Good luck.

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  23. Topper Harley

    I bet Palin does not have an inkling on how Wall St. works.

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