>>The bottleneck is at the refinery level, and in this sense VLO is in the sweet spot.<<
Very true. Any time a Saudi official is questioned as to whether crude output can be increased -- the response is the same: yes, but can the U.S. increase its refining capacity? So indeed, VLO is in the sweet spot.
Looking at the chart -- the stock seems somewhat overextended right now.
stockcharts.com[w,a]dfclyyay[db][pb50!b200!d20,2!b20!f][vc60][iUb14!La12,26,9!Lk14!Lp14,3,3!Li5,3,3!Lg!Lyb20,2.0]&pref=G
I suppose the question is -- what would be a good entry point? At the moment, today's candle is a (near) doji. It would be nice to see a little pullback. The BBs are currently pushed wide open; I'd like to see them contract. Also, the 20 SMA is currently 95.07. That's quite a distance below the present price level. I'd be nervous getting in up here. Hopefully we'll see it correct? <g> |
