Dan Dicker, energy contributor at TheStreet.com, talks to Jim Cramer about the stunning short play announced by David Einhorn on Pioneer Natural Resources (PXD) and other U.S. shale frackers. Dicker believes that many of the points that Einhorn makes are right on the money, particularly the huge capital influx that must accompany drilling for shale oil, the fast decay of wells and the overoptimism of ultimate recoverable reserves. But a current short on U.S. shale oil producers ignores increasing efficiencies from technology, plummeting costs for well completions, a still loaded portfolio of prime well sites and an oil price that Dicker believes will again see $150 a barrel in the next two years.
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.