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December 7, 2005
Suncor hits record, Wed, Dec. 7, 2005, 6:32 PM
ROBTV tonight at 6:00-6:05pm had an interesting discussion on the huge costs and risks of investing in massive capex projects like the Canadian Oil Sands. They mentioned that a welder who would earn say $15 an hour in New Brunswick would command $150 an hour in Alberta's oil sands market. Now that's inflation.
They even said they had reports of some welders earning $1 million a year or more! And the ROB reporters pointed out that $250,000 doesn't buy you a ranch home, but may get you a trailer!! You can get the ROBTV video replay in a couple hours. By the way, I'm going to introduce video of my own pretty soon. You'll get to see me in my daily yada yada.
Today, a major Canadian oil sands player, Suncor (SU) hit an all-time record high. As you know I recommended SU early this year at a low price. It then went to a high price before tailing off. I told you (Oct 5) I would get back with another article when it reached a good re-entry point. I never did. I have just been too busy.
As soon as I get the new website finished, I intend to install better warning systems so I can stay on top of these moves. I really do think I can do a good job of helping traders get in at low prices and out at high prices; but I need to be totally focused on doing that.
Having an oil monitor " if I can find one " will keep me on my toes by running the RSI studies, picking up the news and reports, and so on, and forwarding those to me. Then when they see that stocks might be attractive the way they know I trade, they can urge me to write more. And I will.
Here are the Suncor charts for the Daily and Weekly data series. Please note the RSI indicators at the cycle reversal points.


Posted by Posted by Bill Cara on December 7, 2005 06:30:37 PM | Category: 10 Energy , Canada , Cara Global 100 Best Companies
On November 10, I noted (blog comment) that the Cara Group of oil companies/drillers/producers (May 16 grouping) had RSIs that were indicative of cycle bottom for the group. What I had done is taken your charts from your famous May 16 call and looked at them with that day's data, comparing the two. Nearly immediately, they headed north. However I lacked the conviction to follow my own chart-read into the sector. Since I am certainly not a genius [GLG! :(] this shows the power of your disciplined approach to all who are doubters. As you say, if the Cara Community had then taken a hard look at it maybe we would all have benefited. I'm sure some out there went long about this time, just not me!
Posted by: MarkM
at
December 8, 2005 6:05 AM [link]