Energy Opportunity

Oil futures had a knee-jerk reaction today as the market factored in a decline in air travel and jet fuel consumption.  Since many hedge fund managers trade energy ETF’s as if they were proxies for oil futures, this may provide an opportunity.  The reaction is based upon a directional decision, not an assessment of the […]

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More Overreaction in Energy Stocks

The higher volatility in these stocks makes no sense, but it comes with the territory.  Here’s the story, and I’ll explain more below. Link: Energy ETFs Leak Oil. Bloomberg reports that Crude oil fell on expectations that milder temperatures in the U.S. will help preserve stockpiles of winter heating fuels that are above average levels. […]

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Energy Trading – Background

There is so much attention on oil prices that it seems like CNBC has become the Energy Channel.  It is not surprising.  The energy "sector" is up over 20% on the year and also accounts for the largest segment of earnings growth.  The S&P uses the term "sector" as it is defined in Morgan Stanley […]

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