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
18,593 Blog Posts

I’m Not Really An Oil Man — Sold Out of $GUSH

Here’s what I really think.

I think trading oil is very hard in the summer and fall and easier in the winter. I also think oil has zero momentum and is subject to too many geopolitical events, which make it ruinous to trade. I just sold out of the GUSH position I took last week, for a 3.2% gain.

While it felt good having something up with the market down, it was the right thing to do.

In my trading account, I’m now 85% cash. Luckily for me, my quant account is up 40bps today, totally immune to the sell off in the broader market.

As a point in fact, FAANG is lower by 2.5%, with the mega cap names getting crushed; but overall, the market isn’t too bad today. Breadth is 50%. Banks, commodities, and utilities are strong, mostly a defensive posture. It’s worth noting, old man stocks are higher by 1.2% today, as yields come in a little.

Bear in mind, higher bond yields compete against the old man dividend stocks. Whenever you get a break lower in yields, the PG and K’s of the world rally. If your base case is for lower yields, you should probably get long a basket of dividend payers, even some corporate and munis.

If you enjoy the content at iBankCoin, please follow us on Twitter

One comment

  1. roundwego

    Oil and tech leading the next crash wave. Both owneed heavily by the saudi.

    • 1
    • 0
    • 0 Deem this to be "Fake News"

Leave a Reply