Better to avoid catching the proverbial falling knife.
Wow, oil stocks getting torched.
- Thread starter blakpacman
- Start date
Prob a lot of overkill today.
That seems to be the case. Retail has and continues to be buying the dip. A lot of marginal shale players won't survive. My understanding is that Saudi is determined to maintain OPEC's current production for at least a number of months, and perhaps as long as 2 years, so the carnage in oil stocks is likely to continue, imho.
Actually, not just retail. A number of corporate officers at marginal shale companies have been buying their own stock on the way down, now suffering losses from -50 to 85%.
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It isn't retail, its the hedge funds. Large spec net longs went to record highs in July (450k contracts with the median being <100k in the last 20 years) only to decline sharply in the months ahead when prices plunged. These guys were liquidated, destroyed.
This is a classic parabolic move followed by the bust.
Btw I was talking about crude oil futures, buts its basically the same thing, these guys were probably long oil stocks too.
This is a classic parabolic move followed by the bust.
Btw I was talking about crude oil futures, buts its basically the same thing, these guys were probably long oil stocks too.
Lot of speculative funds went long the false breakout (obvious in retrospect) in June.
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A lot of longs gonna got margin call.
No one is expecting this drop...no one predicted this collapse in oil...and I heard many expecting 80's before 60's..that never happened ...lots of margin calls probably coming from all commodity holders...gold down another 2% tonite...this could great pressure on the s$p