Go Figure

So we are swimming in oil and the stocks rip higher. FNM and FRE implode and the financials rally like little devils into the close. Go figure. I covered my put play on FNM when the stock hit $4. More than a double in a couple of days, I’ll take it. I now believe that we did see final capitulation in both those names if you want to use volume as a guide. Enough is enough, time to move on. Bill Gross was right, they are both just perpetual options now.

ENER was my big winner, and I needed it because for some reason I had a hard time negotiating traffic today. The inventory number came out, we have a bunch of oil laying around, the stocks dip, then rally like they closed the Straits of Hormuz. I was short LEH early, got stopped out, re-shorted later for a gain and then it rallied into the close. Coal ripped and the ags and steel did very well.I honestly thought the financials were going to just go “bottomless pit” there in the afternoon, but I really think the psychology changed on FNM and FRE. What I mean by that is that market has just accepted it, that was in the back of my mind all day because the financials should have been acting worse.

Putin, the little brat, now wants to leave NATO and nuke the planet, maybe that had something to do with the strength in the energy sector. Funny how this piece of crap sends tanks into Georgia when oil drops $30 bucks a barrel. These guys would be eating dirt sandwiches if it wasn’t for high oil. Here’s a chart on ENER.

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