Valero

Valero and the refiners are not a buy right now. Check out the crack spread. Refining capacity is only 73%. Refining margins are literally 8% of what they were in August 07.

People buying refiners now are buying at the wrong time.
 
Would you say that they have much more downside left then? If not, your namesake comes to mind (buy lo sell hi), buying calls or buying outright and selling covered calls might be a strategy here also.
 
Crude costs are the main factor here, the crack spreads have been relatively terrible because of this. Gasoline supplies have been falling because of reduced production and maintenance, crude supplies are building for the same reason. If some semblance of logic ever returns to the crude futures and a decent pullback ensues, the refiners will likely take off in a hurry.

I like FTO as well, also ALJ, HOC, TSO & WNR and VLO of course.



Disclaimer: I currently hold a position in WNR

Edit: I was responding to a post by "piezoe" which seems to have disappeared.
 
BuyLoSellHi

I know it's after the fact, but I have to post a chart. It is the reason why I use pnf charts. When you made your original call there would be no way you would have entered the stock at that point if you knew pnf charting.
 

Attachments

Quote from HolyGrail:

BuyLoSellHi

I know it's after the fact, but I have to post a chart. It is the reason why I use pnf charts. When you made your original call there would be no way you would have entered the stock at that point if you knew pnf charting.
More...

I don't believe in technical analysis.

I've never bought or sold a single stock based on chart patterns.
 
You must log in or register to reply here.
Back
Top