RE:RE:RE:RE:Monday CPG.TO commentDespite some positive days recently, I believe that there is more market downside ahead. Damage to the economy is ongoing quite some time after coronavirus (COVID-19) statistics improve. Recovery will take a while and oil stocks are bloated in a reduced demand environment. Even with oil producing nations voluntarily cutting production (which helps in the medium term), much damage has been caused and $50+ oil is quite some time off. Investors will push prices higher on an oil production cuts deal, but prices will likely sag after the initial euphoria as reality bites.
CDNdollars4me wrote: In a singular isolated environment, your logic makes sense. In the sector, where we see meg up 20% for example, your logic seems to diminish somewhat......further thoughts? 10.3 million volume.
Takeactionnow wrote: CPG.TO held ground quite well on oil dips today, indicating that investors believe that oil prices will be moving higher, thus improving the company's outlook. One issue to bear in mind in these scenarios is that a continued erosion of oil prices can result in a sudden "cascade" of an issuer's stock that has been holding up. That is a very real risk with CPG.TO over the next couple of days. Oil storage numbers, which will come out this week before any deal can be concluded (if that even happens this week), will be bad and will add downward pressure, at least in the very short run, to oil.
CDNdollars4me wrote: with 8.5 mil volume and no share price movements, what to give us your thoughts?
Takeactionnow wrote: Held over the weekend since 2.5 days is a long period for potentially good news to come out. Oil prognosis negative before market open and sold trading position at the open at $1.41. Repurchased at $1.34 (this trade and others based on oil price movement). Sold again at $1.42. Bought again at $1.35. Sold again at $1.44. Will NOT hold overnight since even news during the day today (11:46 AM) of Russian willingness to make significant cuts didn't have a lasting impact on crude price. No agreement will occur until after meeting of oil producing nations on Thursday, April 9, 2020 (at the earliest). Oil storage constraints weighing more heavily than positive expectations of oil deal for the moment. Net trading position price improvement (i.e. improvement of long position cost) for the day: $0.14.