Apr. 3 at 9:33 PM
$TMDE First is a disclaimer that I have a long position from
$1.57. Now that that's out of way. Here's what to watch with these oil name. 1. There has been a divergence in Oil prices and these low cap names
$BATL $RBNE etc. This divergence has been in place since the first Thursday is march (March 5th). These names popped hard the early days after operation Epic Fury (which was Feb 28th). The next monday...these names went off! by that friday, they had all decoupled. Why people keep saying oil is going to
$125 as a gaurantee for these names to pop is beyond me. Just look at recent action. Many low cap oil names did not pop on Thursday with the surge to
$112. Or they rose slighly or couldn't hold gains except for
$TMDE and
$SKYQ. The later two had less risk of dilution. so something else determines what pops not really oil prices. The thing watch...are these names going to 'recouple' back with oil prices? if so, then if we expect oil prices to pop then perhaps we can be optimistic.
