RE:RE:This is called leverageZoolanders21 wrote: I'm sorry Tcelling but this is more than just reacting to oil. The stock has been running up for a few days when oil was flat. Volumes are up.crazy There is something up, either news of the flow tests leaking out early or?? You definitely need thick skin owning this one thought!
But the stock hadn't reacted to the run up in oil as it should have previously. The market isn't perfect nor instant. As I said, the shareprice should be more like $8. It isn't (obviously).Therefore, if oil remains flat, the shareprice should work its way towards $8 in a rational market over time. If oil remained at ~$67 brent, I would expect $8 over the next few months (not days).
In this scenario, if tomorrow oil is flat and the shareprice gains $0.50, you'll say it isn't leverage and must be news but I'd say it is doing exactly what it should be based solely on leverage and volatility.