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September 28, 2005

Be wary of smalltalk, Wed., Sept. 28, 2005, 6:30 PM

Be wary of smalltalk. It represents the meaning of nothing.

While knocking on the door to a residence, a man says to his wife: These are financial people. Use the word ‘distillate'."

I suppose I could put that joke into the context of the barber speaking to his stockbroker client, or chatter at the water cooler, or ....

You see, everybody is talking about oil these days. There are simply too many experts around for a guy like me to get in a word edgewise. :-)

Isn't that scary?

Here is the long-term chart of the XLE, which is the popular oil and gas industry ETF that has become so popular even barbers and house party guests are talking it up. A year ago there were even a few retail stockbrokers who had never heard of it.

122a006.gif


Today's word of the day is Distillate". Just ask Grandma!

Posted by Posted by Bill Cara on September 28, 2005 06:31:38 PM | Category: 10 Energy

Discourse

Doesn't that make you suspect how long the current uptrend of oil will last? You mentioned a secular bull market for commodities and gave overwhelming evidence that convinced me the fundamentals were strong, but it seems the sentiment is too "high" and high oil's days are numbered.

Posted by: FirstConsul [TypeKey Profile Page] at September 29, 2005 4:20 AM [link]

I think Bill has commented that those trading the oils right now are doing so on momentum. Sure $67 oil produces profits but these stocks are moving in lockstep with the daily good news/ bad news not long term fundamentals. I have been trading in and out for the last several weeks in the stronger oil/natural gas stocks myself using the same strategies. If I had some of them at lower prices I would stay in til the heating season is over because the headlines are gonna be what moves them as well.

Posted by: MarkM [TypeKey Profile Page] at September 29, 2005 5:44 AM [link]