What a fucking hectic morning. I thought I’d awaken to a bleak landscape strewn with waste and chards of metal bustling through the easterly winds, instead I got an end to the pandemic and massive short squeeze in crude — propelled by incredulous statements out of Trump, alluding to the Saudis and Russians cutting production by as much as 10 million barrels per day.
The result was sharply higher crude, and even higher oil stocks. I missed this trade by a day, having sold out of my MUR and HAL just the other day. I went into today HEAVILY long virus plays, which all looked great yesterday, but absolutely dreadful today.
Luckily, I covered my shorts early and also had some NUGT. This is what I booked today, thus far.
DYNT – wash
MEDS – wash
I also chased oil stocks here, admittedly. You don’t get to see a 40% move in crude everyday. Right now WTI is OFF THE HIGHS, but still +22%. Buying after 20% moves is dangerous, but I sense that this could be a key moment for the space. Maybe I’m wrong, maybe not. We’ll see.
I’m getting FLOGGED on FRO — because a supply cut means less tanker volume. I’m not too sure about that, but again — we will see.
At the end of the day, in an attempt to bring normalcy to my holdings, I’ve been buying consumer staples that pay dividends and trying to trade around it. I could end up looking like an absolute clown today, or a champion. I am experienced and humble enough to tell you this is not investing, more akin to gambling.
Nevertheless, in the big scope of things, higher crude is good for every facet of the economy now. It helps the junk bond market, the banks, employments, and offers a semblance of inflation — which is why gold is doing so well.If you enjoy the content at iBankCoin, please follow us on Twitter