Keep a close eye on the price of corn. Should corn drop, while the price of ethanol remains high, ethanol stocks will fucking rip the heads off the shorts sellers.
Already, there is nice action in [[PEIX]], [[BIOF]], [[AVR]], [[XNL]], [[GPRE]], [[MGPI]] and [[VRNM]]. Unbeknownst to me, [[VSE]] is lagging the group today. On any dip, I will be buying more.
As you know, the general market tone is bearish. Frankly, it’s time to take some money off the table and get short.
In my estimation, [[FXP]] and [[SRS]] represent the best “value,” playing the downside.
With oil expensive, I love [[FTK]] here. From what I understand, the company should be giving quarterly guidance sometime this week or next. I know a few drilling companies that operate in their geographic region; they are net buyers of the stock. If they could get their fucking act together, the stock can print as high as $50.
Finally, it’s worth declaring, gold will be printing all time highs soon. Write it down. Within the space, I like [[DGP]] and [[AUY]].
Playing the downside, I default to the “Reverse Four Horsemen”: [[FHN]], [[DSL]], [[FED]] and [[CORS]]. And, for good measure, I hate [[LEH]] and [[MER]] too.
Comments »