First, I’d like to say the broader indices do not represent how easy its been to make money, long markets. Reason being, China is up more than 20% and every single major index in the world is outperforming the US. For those of us who opt for a US centric portfolio, biotech, security and oil stocks have offered outsized returns.
Here are the median returns of the top performing and underperforming industries, year to date.
Listen to me. This is what I want to do: I want to fade oil, hard as fuck here. I don’t want to sell it short, however. I will scale out of the remainder of my SLCA position and call it quits, hopefully above $40. The move we’ve enjoyed is not enough to warrant stock prices up here. I’d like to revisit oil after a big drop or after the summer. The easy counter-weight play for oil is airlines, restaurants, refiners and gas station plays.
Top ideas include: WNR, TA, PNRA, AAL and SAVE.
But I don’t know what’s gonna get hot, so keep an open mind for the specter of grande extravagance. All I know is our markets are not reflecting the mood change that has gripped the fucking faces of the Chinese and forced them to buy common stocks.
Get your steel tipped boots ready, for we’re about to embark on a face kicking journey of a lifetime.