Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (40911)	11/28/2012 12:08:45 PM
From: Keith Feral	Read Replies (1) \| Respond to of 218784

200 point move lower from yesterday to this morning off Reid's comment about the lack of progress was absurd. But, the market was coming off a 500 point rally, so it was vulnerable to profit taking. Oil prices are staying around the $85 level, and can't seem to generate any momentum. I think we have $3 gas back by early January or February, with $3.25 as the Spring peak next year. The world is due for some affordable oil and gas again next year. I think by this time next year, we'll see oil service stocks like SLB trading with 3% dividends at much lower prices. I always hesitate to make any macro calls about the S & P because in order for the economy to grow, oil prices have to give. If energy and material stocks lag next year, that's a drain on the S & P. It's a very good drain, but there will be sequentially lower profits in energy in 2013 vs 2012. I don't see any way that oil prices will be able to regain YOY price increase til next June at the earliest. Frankly, I'm bearish on WTI and Brent prices for the next several years, more on Brent than WTI which already trades at a $25 discount. However, gasoline might the be best short play over time as Brent prices decline 20% over the next year or two.