A.E. We're going to have to see more analysts turn bearish
and get some gasser stock down grades to create the sentiment we need to put in a good bottom in the sector.
Always good to keep in mind that in a secular bull trend, the corrections tend to be quick, sharp and scary. That was what we saw today.
Let's watch for how much follow through we get tomorrow. As with the PMs, am holding only partial positions in my fav E&Ps with a ton of cash in reserve to take advantage of sharp sell off to fill out my holdings.
Don't have time to go into the FA of my view that Lehman - as is almost always the case with <sell side> analysts - is to misrepresent the big picture by telling only part of the story. In this case, we're going to see more bearish talk that will sound reasonable and will be intellengently written.
But he motive is always the same, this time of the year:
Drive energy stock prices down and scare the public out their long positions. Then, the big brokerage in-house trading depts and their major private clients can accumulate the best stocks, at optimum prices, before the rest of the Fundamental story is released as the cold weather arrives.
I've been through this same process dozens of times. IMHO, the only thing that will take the energy stocks down thru more than a ST correction, is an important (multi-week or longer) decline in the broad stock market.
Have to leave it there. Logging out, till tomorrow, to have some real world fun with the family.
All the best to you and your family.
Iso |
