Peak Oil, Price?!
Jeff deGraaf had some interesting and insightful comments this morning:
"Energy weakened Tuesday, and none too soon. We've maintained a bearish stance on the commodity, and drew a line in the sand at $67 (see last week's daily), believing that a multi-year top may be in the making. We cynically believe that governments buy assets at peaks and sell them at lows (part of their social and moral duty), and as such we believe that Venezuela's expropriation of oil fields is a classic example of yet another government "buying" near the peak. The stocks look more vulnerable to consolidations than bear markets, but we expect underperformance at a minimum through most of the summer."
"Energy weakened Tuesday, and none too soon. We've maintained a bearish stance on the commodity, and drew a line in the sand at $67 (see last week's daily), believing that a multi-year top may be in the making. We cynically believe that governments buy assets at peaks and sell them at lows (part of their social and moral duty), and as such we believe that Venezuela's expropriation of oil fields is a classic example of yet another government "buying" near the peak. The stocks look more vulnerable to consolidations than bear markets, but we expect underperformance at a minimum through most of the summer."
posted by Never-Limp at 2:01 PM
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