MigraineCall wrote: Everyone has to know their limits, and stay within what is comfortable for them. If an investment causes you to lose sleep, or has too much risk, it is not for you. I am not confident of anything else other than oil on the markets, due to economic headwinds, inflation, debt, and a recession.
Suncor trading showed it was one of the strongest of most oils today. The valuations are still too low, by any metrics. This windfall from $100 oil will be reflected in the Q1 results. Looking at the WCS chart, it is quite glaring how high the Q1 average price will end up.
There was billions that came out of long oil contracts last week, and now there is a record low in all positions, both longs and shorts. ICE has tightened margin requirements on Brent last week, which pulled a lot of speculators out of the market I suspect.
For me, everything was on sale today, and although I was down a new record for a trading day, I put all the spare cash I had to work in even more Canadian energy, and am nearly at full margin once again. I'm still long HOU from last week. Glad I had kept some dry powder to use for the rest today.
Note nothing has changed with respect to the oil supply demand imbalance, or the Canadian oils today, except for market overreactions to relatively insignificant news from China. The Ukraine war is not over, yet a $30/bbl war premium just came out of the oil price over a few days. Any day over $60 is a good day.
Iranian and Venezuelan oil is still staying on sanctions, in addition to the Russian oil off the market.
Mr. market knows about the Fed rate hike Wednesday already.
My strategy is if it continues to drop further against me, I'll trim some positions as I have done before to maintain margin requirements.
However, I would not reccommend this approach to anyone, but it works for me, and beyond my wildest dreams.
'Be fearful when people are greedy, and be greedy when people are fearful'.
Good luck!
Returns2021 wrote: I am out of Suncor as of today. It has been great to me......major market correction is in the works with a prolonged recession on the horizon