Right now the U.S. Markets are in serious trouble, not to mention oil is about to BTFO. We have a perfect storm going on at the moment, and I want to stay away from stocks. The past few weeks the easy money has been made on the short side. It is amazing to watch stocks knife lower and lower.
Just today, I sold most of my longs and are letting my shorts run. As you know, oil service continues to be my favorite sector with [[TTES]] being my top pick– if I had to be long something.
If you are not comfortable with shorting stocks or buying puts you might as well take a vacation and come back in about 3 years. Better yet, just get long some inverse ETFs, [[REW]] still looks good here.
It is ugly out there…
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this market is dead and gone. there’s not one substantial upside catalyst on the horizon. even theoretically. china would need to print money and buy all the excess housing in the world and burn it down.
the s&p still has a way to go before it retests the bottom. it’s most certainly going to do that and smash right through it, unless mt st helen’s suddenly erupts and spews a 3mi high fountain of crude for the next 35yrs.
Good advice Cajun.
Interestingly enough, the put/call ratio has fallen throughout the morning as the selling gets worse. That is not good news for any bulls left.
http://www.cboe.com/data/IntraDayVol.aspx
RC:
CNBS out on a Chevron oil rig in the Gulf today.
From Nightly Business, 1/29/07:
http://www.pbs.org/nbr/site/onair/transcripts/070129d/
“Deep water drilling is hugely expensive. It costs Chevron about a half million dollars a day to lease and operate this ship. The company estimates it will have spent more than $2 billion by the time it produces a single drop of oil. Chevron is optimistic that once Tahiti comes on line, it will produce oil for up to 30 years. Still, there are uncertainties. The company estimates Tahiti will be profitable as long as oil prices remain above $30 a barrel.”
So how much will they start making next year @ $140+?