Thursday, February 17, 2011

Refiners are the New Cloud Computing or Social Networking Stocks

It is interesting how the overall market is not going parabolic (instead she is slow and steady as she goes) but different sectors within the market are going parabolic.  I have not seen a move like this in the refiners since perhaps late 07 or early 08.  There is something called a crack spread which is essentially the different between inputs (crude oil) and outputs (refined petroleum) and based on how these stocks are moving, I assume it must be blowing out.  The red line below is the 20 day moving average - these are acting like Netflix or JDS Uniphase.... 30% over the 20 day for a refiner?  Holy Bernank.

No positions

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012