Seems that the all those alpha hungry, beta hyper leverage hounds in the pits buying the top in energies are being carried out on a daily basis now. Today's energy inventory numbers coupled with saber rattling from OPEC (they're going to cut production by 500k barrels) is not enough to re-energize the bulls. The draw downs in inventories were huge due to Gustav shutdowns, and even next week's numbers should be lower due to shut downs this week from Ike's threatening pimp hand. That doesn't change the economic conditions permeating the globe. And that doesn't change the fact that there is a wave of redemptions flowing into hedge and mutual funds alike. So whatever you think the fundamentals are on a 5 to 10 year time frame it does not change the fact that folks are in forced liquidation mode. So for all those jerks buying at the top with hopes of a 200 handle on their contracts........boo hoo!...........see you at 84 jerks! Selling the rips is the most prudent thing to do here, because guess what? $100 oil is still too expensive in this macroeconomic backdrop, so SELL, SELL, SELL!!!
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This blog is a collection of my analysis derived from many sources. All opinions are for entertainment and educational purposes only. All investment decisions should be cleared with your own investment advisor.
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