To: ChanceIs who wrote (106470 ) 8/4/2008 1:52:16 PM From: gregor_us Read Replies (2) | Respond to This is now the most severe correction in the energy equities, of the past 3-5 years. The temptation is to say that the context, a credit crisis and global bear markets, is most of the cause. In that context, participants may want to own energy equities, and would prefer not to sell them--but that is the sector where alot of capital has been hiding. So people are not feeling inclined to buy anything, and are selling what they can. This, despite the fact that valuations also reached their lowest point, of the past several years this Spring. I would also add that this correction comes after the Toronto basket of energy stocks, using the XEG etf, frankly went sideways for two years, before mounting a 3 month rally this late Winter and Spring.
