Where she stops, does anyone know? I am talking about the unexpected breakdown of oil that seems to have breached levels that I know very few thought would be taken out.
The selloff in these names, a selloff that is now reaching every single company's stock in a violent fashion, signals to me that people fear a huge breakdown from these levels.
I think that there were many longs betting that some of the turmoil overseas would impact supply. Instead it's impacted demand!
In the meantime, we keep pumping and pumping and it's getting a little claustrophobic.
Still, the higher-yielding oils are coming down to their fixed-income equivalent levels. They are getting very attractive for those of us trying to accumulate positions over time, as we have been in Action Alerts PLUS.
But we don't have any of the high fliers any more, having offloaded them into strength, taking some terrific gains.
Nonetheless, I think it's almost time. These stocks are in some incredible paroxysms of pain and I think it's time that you try to figure out which domestic companies might be getting interesting again.
I still like Apache (APA), Anadarko (APC) and EOG (EOG) and would love to see Marathon (MPC) and Occidental (OXY) go lower. But the higher yielders? I think these are very attractive levels to start grabbing some if you haven't already.