Okay, people aren’t honing into the most important story of the day: OPEC is fractured.
They’ve been able to get along amidst wars, revolutions and hostage situations, but not now. Why?
Two fold: they are afraid that their circle headdresses will catch bullets. And, secondly, they do not want to increase supply, mainly because they like money.
Fair enough?
They figure this house of cards will collapse anyway. So why the fuck should they push oil prices lower? It’s negligible in the big scheme of sovereign disasters.
Having said that, at least in the interim, I love oil and gas stocks.
My largest holdings in the sector are OXY and ATPG. I initiated a new position in CLR today. But there are many more worth looking at. If the market bounces, this sector will be on fucking fire.
Here are the top 5 rated basic material stocks in The PPT.
APA, SWN, PXP, WRES and KWK.
Here are the top rated stocks with highest short positions.
KWK, CRZO, NOG, CRR and RES
If you enjoy the content at iBankCoin, please follow us on Twitter
idiots indeed, should have their headgear soaked in kerosene
I thought $WNR was the biggest holding?
It is. However, WNR is a refiner, not exploration.
absolutely agreud. i think that they cant come up with more “production”.
Long and strong for a bounce off the lower trend channel, looking to short IWM again around 82ish.
This is really good news. OPEC blowing up is fantastic for western economies. It should lead to higher production and lower energy prices. Iran gets to be in charge for a while and therein lies the problem.
That’s the Toronto version.
OPEC Nicely orchestrated. Why would they lower oil when we will buy anyway? The Saudis can say they tried and blame it on Chavez.. Obama can blame it on Chavez. Thanks for trying. LMAO
Political talk could get you banned Mr.
1 cinder block shampoo too…
It’s actually quite hilarious how u only buy crap and leverage urself and make money. You buy CLR and the company lost more last qtr than ever before. At this point it would take them 100 years to ever be catch up with their market cap. That means CLR is trading 100 times and years ahead of their net income. i’m not going to be alive for a 100 more years to gamble in retarded companies. I swear dumb people control the world and its the reason why they make money fast and lost it all just as quickly.. You are a special dumb person because u are in it for the long term. You made dumb money for 10 years faster than your biolgically suppose to and now u will lose it for the next ten.
Seriously Mikey?!?! You know where you are at right?
Methinks someone’s a bit disappointed about thier blog review.
*their*
Don’t sweat it with the edits on this one, DMG. Mikey has proven that spelling and grammar are not to be found in his toolbox of skills. Actually, this whole website has been slipping a bit in this department. Even Monsieur Le Fly and the Senator have lately not been as scrupulous as their blogging of yore.
what ??
you cant print oil?
Okay COVER NOW
go long tomorrow.
something about OPEC?
who cares….
S/R.
I’m the worst kind of degenerate. I only trade the nasdaq, gold and oil.
This OPEC meeting is telling of Venezuela. Their economy is highly levered to the price of oil- one third of their GDP is from oil and it accounts for 80% of their exports and half of their revenues (not sure if this is 2011 data). On top of that they have a corrupt political organization capable of making rash decisions.
Today, Chavez pushed lawmakers to nearly DOUBLE the debt ceiling in Venezuela. On top of that there are rolling blackouts throughout the country because of low water levels behind hydroelectric power plants and the power grid infrastructure is not adapted to take advantage of its oil reserves. The bolivar may see more trouble.
Oil revenue is the reason Chavez can get away with being stupid.
Until he is strung up like a Mussolini Ham.
________
Here’s what I am starting to think. The economy will not mend until the government stops bashing the banks with new regulation and new capital requirements as they won’t lend and it will keep choking the recovery.
Like it or lump it every new reg or capital requirement shrinks the balance and therefore shrinks lending. The economy can’t grow without lending.
The capital to lending multiplier is around 15:1. In other words ever dollar of capital not being put to use or requiring higher reserve means around 15 bucks that can’t be lent. Additionally it also has the effect of reducing the loan book as the banks allow loans to run off in order to meet the new guidelines without going out and raising new capital.
So unless they stop fucking over the banks you can forget growth. It’s over.
One other thing. The regulators are out of their fucking minds. They tighten the banks just when the economy is potentially the healthiest coming out of recession and beginning to expand and they loosened in the middle of bubble like conditions. It’s the opposite of what ought to be happening.
Anyone who ticks this thumbs down is a fucking economic illiterate and ought to be banned. The economy can’t grow while the banks are choked as lending won’t grow and at the moment actually contracting.
Take a look at this. Lending is falling again which means the banking multiplier isn’t working and velocity is down. This is happening though Q3
http://research.stlouisfed.org/fred2/series/LOANS?cid=100
J-
Break them into components though, it’s rather elucidating. Commercial and Industrial loans at Commercial Banks ticked higher off from a bottom trough: http://research.stlouisfed.org/fred2/series/BUSLOANS?cid=100
Real Estate Loans at Commercial Banks are the component bringing Total Loans down. http://research.stlouisfed.org/fred2/series/REALLN?cid=100
Consumer Loans at Commercial Banks also are trending down after a huge increase: http://research.stlouisfed.org/fred2/series/CONSUMER?cid=100
I should emphasize that Real Estate loans stand at roughly $3.6T (55%), C&I are $1.2T (20%), and Consumer are $1T (20%). Commercial and Industrial loans are growing which is good.
J,
I hear what you are saying.
I believe there needs to be a fundamental re-writing of credit processes before any lending occurs.
An entirely new and structured way of looking at credit.
Banks do not want to lend for real estate.
Demand for real estate has ticked up..but with so many issues with clouding of title on a piece of property.
(essentially having the right to sell it because you are the recognized owner in law..whether you are a home buyer or bank.)
It’s a mess.
What blows my mind is that buying and packaging mortgages was a primary revenue driver for banks for years. It’s how they made their money. However they took about a zillion short cuts. Now nobody knows who owns what anymore. It is as if McDonald’s made money on burgers and fries for years..but never invested in a grill, deep fryer, cashier, cash regiser or ketchup. Because investing in internal processes to make sure that you absolutely own real-property lowers revenues. Simple “greed based short sighted shortcuts” within the banks. IMHO.
Purchasing a home for living or investment is a major purchase for anyone. (It’s not like buying an ipod.)
And that process was not handled with care. Now it’s a complete mess.
I think how we look at credit will have to be re-thought. Especially with so much consumer and banking debt.Yes they are “re-captalized” but reading a bank financials is still like guessing. There are so many baked in assumptions. I also still believe that there is a ton of derivative exposure tucked away in closets..and nobody knows how the contracts trigger as they are forgotten about and employees come and go.
just some food for thought and my silly opinion.
Surplus….
no no no it’s a great opinion,.
thanks.
The Fed has the ability to decrease the IOER, which I think is going to be their next move. I think signaling of an end of rate declines will adjust investment decisions of fringe investors. It seems every time refis make a rapid one-time increase is right after a mortgage rate bounce.
They can, but I’m not sure it can work. Almost every large bank is looking to reduce their balance sheet.
did you ever consider that demand from borrowers has declined?
Yep. from when to when? Since the crisis demand has risen. Take a look at these charts.
http://research.stlouisfed.org/fred2/series/DRSDCL?cid=32239
and this
http://research.stlouisfed.org/fred2/series/DRSDCIS?cid=32239
Demand has risen.
The banks are making their money by getting Fed money for less than 1% and buying T-bills that pay 3%. Easy money, no risk, no need to lend out to the private sector where bad shit can happen. It’s an all gov’t economy.
Clueless Jamie Dimon dares whine about financial regulation to all-knowing Clam, in public no less. All knowing Clam responds that hearing Dimon tick off new financial regulations makes him “feel pretty good,” but delivers the line with a bit of an submissive grin, calling Jamie by name, girlish “ee” sounding ending and all. Clam then gives Dimon’s whining too much credibility by delivering a lengthy, measured response.
Next time Clam just tell whiner shut up. Clam all powerful. Tell whoever do whatever.
http://tinyurl.com/6lyblwz
Hear me now and listen to me later……..!!!!
There is no recovery.
There never has been a recovery.
There is no recovery in the near future.
It is all smoke and delusional clown operated mirrors.
Looks like I picked the wrong week…………
http://www.youtube.com/watch?v=lyhaTQseKTQ&feature=related
“hear me now…and believe me latah!”
___________
1973 or 2011? they don’t care
“Certainly! And how…; You [Western nations] increased the price of wheat you sell us by 300%, and the same for sugar and cement…; You buy our crude oil and sell it back to us, refined as petrochemicals, at a hundred times the price you’ve paid to us…;
It’s only fair that, from now on, you should pay more for oil. Let’s say ten times more.”[6]
While we’re all watching the fun with OPEC, nat gas is creeping up. Smart money getting some early positions? I don’t know. But there are a few oversold companies like FST that are worth a look.
Fly tweets reeking of nervous desperation…
(That’s a banning, yes?)
We have something else planned for you
exactly right fly.. this is the only power the middle east haters have on us and they can take down our economy by keeping oil prices high… they’ve got enough money to last them and they don’t care about their people..
that said – i made a f*ing killing today,, i went ALL IN…. 10 contracts of /cl and 98.50 and rode it to 101.50… do the maths 🙂
Oh yea, I bought 50 at 98.37 & sold at 101.89.
Who gives a fuck if you don’t post it real time..
even if you posted it real time I still wouldnt give a fuck.
http://www.youtube.com/watch?v=bXhNDgRkrd0
ur all idiots, this economy is screwed do the math!
Mike, what math is that?
1+1 = 2, plus a $5MM bonus, investment banker math?
1+1=3, plus $300k for life and free medical, gov’t worker math?
1+1=any number I tell you, Fed Reserve math?
1+1= I don’t know I was a history major studying how Paul Revere warned the British, Sarah Palin math?
Who is a bigger joke? Palin or Weiner?
Palin.
In 1775 EVERYONE REVERE WARNED WERE STILL BRITISH
1. Paul Revere made his famous ride in 1775. Most if not all colonists in 1776 still considered themselves to be British. The Declaration of Independence wasnt drafted and submitted until 1776.
2. It is well known by many of us who have actually studied our American history that Paul Revere was captured by a British Patrol at the end of his long day and according to Paul Revere himself in his own memoirs he stated that he told the British Patrol that he had alerted as many of the people in the villages and towns he rode through that the British military were coming to confiscate powder and firearms. He warned the British Patrol that the British would not be successful as 500 armed colonists were on their way to prevent the British from confiscating the colonists powder and arms.
SO FUCK YOU!!!
Who came up with this, Glenn Beck?
I dunno, do you feel that its Glenn Beck’s fault that you are wrong so often?
There’s doctors for this kind of thing, you know.
_______
Jake, I’m honored…not really.
I’m surprised Palin didn’t say that Revere was warning all descendants of Adam & Eve.
hey Q, id like to see that chic in a porn film, doin a goat
I’m not surprised you’re “surprised.”
Remember, doctors. Good, supportive doctors.
_________
Why can’t you admit that Palin is a fucking idiot? Everyone else has come to the realization.
Jake, anytime you want to compare track records, you let me know.
Daily 200sma target almost reached per last week’s market thesis.
http://www.youtube.com/watch?v=W4hfdaC7eL4&feature=player_embedded
Banking boycott of the market because of failure to raise the debt limit. Do you see how politically, the ball and blame is in the politicians court now? Politicians are being told to increase the limit, do not allow a sovereign default, and go easy on the banks with mortgage fraud. It is political if the President is a politician since it is called the President’s Working Group on Financial Markets. Big picture, connect the dots, this is what is going on with pressure on the politicians.
In cash and gold short term until Friday to evaluate the new POMO schedule and some Greece agreement, but buying the dips hasn’t worked and neither has timing the POMO days. Perhaps the war on speculators announced by Obama includes all asset classes including equities? The only other off the cuff idea is that with so much leverage and a comex that is rapidly losing physical silver, they may be tanking all asset classes to cause margin calls that induce selling of precious metals before a comex default. Metals and oil are related because the ME takes dollars and buys PM’s with it.
We need to check the banks to see if they have another 100% trading success rate for the second quarter. If they do it is collusion and theft, plain and simple. They are making up for the low volume with volatility that they cause but first they are taking major positions and then moving the market on massive leverage, we need Glass Steagall.
idiots reside where ever man is.
Another spectacular day.
Been a nice run. TWM, SDS, and QID up again. Euro short versus the dollar via EUO worked like a champ and bounced back nicely today. It’s been a bear paradise the last few weeks!!!
Fly,
Once you mentioned/recommended MHR, FPP and TGC. What are your comments regarding these companies ?
If you are Bullish Oil/Gas then you might want to get long FPP and TGC, no?
Dirtydawg