This run in Mechel (TML) has surpassed all my expectation; the chart is amazing and it would be wrong not to take some off the table at this point. Up 30% in just a few weeks. Selling about 20% of my position here at $130. I will look at add back on (hopefully) a pull back.
I mentioned yesterday that the oil service stocks seem to be on the verge of life here - both of my 2 deep sea oil drillers, Atwood Oceanics (ATW) and Diamond Offshore Drilling (DO), are looking nice today, so I am going to add a layer to both these positions on positive momentum. I find both dirt cheap and undervalued; and finally the technicals seem to be improving... also added to some National Oilwell Varco (NOV) and Core Laboratories (CLB).
As oil holds up and people realize crude is not beholden to the US economy, perhaps these stocks will finally get their due. I am still a bit worried about adding at the top of a bear market rally phase, but these stocks have really lagged the underlying commodity so hopefully that will provide some cushion.
Long all names mentioned in fund; no personal positions
2 comments:
Have you looked at the refiners HOC, HES, TSO, WNR? Low risk trades as all are close to support and seem to be done going done. WNR is right at support for instance.
I've owned WNR TSO and FTO for the fund. All approaching resistance levels now; but FTO is my favorite on fundamentals.
I'm just trying to wrap my mind around $101 oil with only $3.00 gas. Still makes no margin for these guys. I'd like to see gas at $3.50 and then they can actually make some money. But the playbook is buy these guys now for the spring season. If I buy one, it will be FTO - 200 day is just under $40 so only about a buck away from an area of interest after today's rise.
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