CRUDE CONTINUES
UNRELENTING UPSIDE
The moves are head-spinning...mind numbing and just about as insane as you can get. Yesterday oil was up 2 bucks and change...down 3 bucks...closed flat....and is up 3 dollars this morning at 127.00 which is a new contract high. I've given up trying to pick where the top is but i continue to slowly build a "long" short position in DUG which is a proxy for short oil and gas. In other words if you are long DUG you profit if oil and gas stocks go down. One of these days we will see this correct and correct hard. Just don't ask me when.
All of this has some impact on mlps which continue to behave rather well overall and many issues continue to put price and time distance from their March lows. Its a Friday so the news flow is light. Nothing yet on headlines and nothing on the upgrade downgrade list so far.
Your distribution checks posted into your accounts yesterday so spend well or reinvest well...your choice of course. I'm doing both actually. I'm at work this morning so i may have missed a headline. If i have...please share it with the rest of the class in the comments section. One item left from yesterday is that Atlas Resources (ATN) did price an offering of shares which has the stock under pressure this morning. No mention in the press release of a price for said offering. It might be nice to know.
joseph cioffi's Source Page - Associated Content
5 comments:
Spending my dist on some bright shiny GEL units. The Denbury drop-down will happen one day I hope!
Joe,
Re: Your DUG pick. Did you see the PBS NEWS HOUR interview with George Soros a few days ago? Convinced the "oil bubble" will come down hard sooner or later.
Carlos
for a change i hope he is right!
Good move on buying more GEL. I'm DRIP'ing my distribution from them. The Denbury dropdowns are supposed to match their non-Denbury acquistions at a rate of 1.5x. So with the Davison purchase last summer, GEL is supposed to nearly triple in size...assuming the stick to the gameplan outlined to investors last spring.
just added a few more shares on the DUG...and now i'm at the top of the ladder. Average price just under 30. Now the oil market has my permission to drop.
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