Some oversold names are bouncing hard, FSLR, AIG (took upside stabs in em yesterday), but overall I feel like this market is heavy. Lots of players are figuring that with Labor Day coming up the market will be firm bcuz it usually is - thats a perfect time to pull the rug out.
I remain short and am leaking out some of the AIG calls I bought.
If you look at the treasury market bonds keep creeping higher - not a big vote of confidence in the growth story.
Front month natgas is down to $2.77 - that is just amazing - that must mean that there is really tepid industrial demand - CHK go down allready.
I read that BP found a large oil field in the gulf of Mexico like 3 billion barrels worth - is there any chance that oil replenishes its supply over time? That would be cool.
JB
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The world is awash in petroleum. Maybe it will be more expensive to recover but it is there nevertheless. "Peak Oil" theory is a bunch of Malthusian crap. I heard this from the chief scientist of BP over ten years ago.
ReplyDeleteThere might also be seepage of new oil into pumped out reservoirs from neighboring sources -- not sure about this.
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Its interesting how it keeps being found out there.
ReplyDeleteHuman beings have been in love with impending doom and shortage stories through all of recorded history -- angry pagan gods, world-wide killer plagues, insufficient agricultural output (Malthus), nuclear doom etc. Now its global warming due to -- you guessed it -- anthropogenic(human)activity otherwise known as burning of fossil fuels. The climate may be changing. It always has been changing. But spare me from the carbon bullshit.
ReplyDeleteThe problem is that since the "herd" buys into this stuff (Oh, we like to feel guilty!), we will all have to pay the price economically. Get ready for your expensive electric vehicle which will be small and can go only 80 miles on a charge and less in very cold or very hot weather.
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