Fed cat bounce...amidst shale.com bust!

Initiated new position short Suncor Energy (SU) - average price $30.50.

Since the fed speak last week jawboning the market ever higher I have given my current stance much thought and do not see any material change in the fundamentals.

  • OPEC and Americans ready to turn up production in race to the bottom. Google Saudi oil comments for a good laugh.

  • Even if the broad market rallies this will not affect the energy producers earnings at the end of the day. I figure we can price in the fundamentals now or we can wait until earnings season.

  • Energy prices continue decline...Credit continues to deteriorate....The only positive numbers I have seen lately are the ones that the government (US) makes up/or influences.

I have read some posts on the internet talking about Warren Buffet's position and how that should inspire confidence. Hhhmmmmm....Do you share his time horizon and have his staying power? 
To all those dividend disciples...by the time they cut the dividend you will probably have lost more than half of your money. 

Tip o' the day......Sell when you can, not when you have to.


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