RE:the shorts want to keep it under $5decently strong intraday bounce today, looks like it will be close to 100k day.
BNE is regularly posting double digit volume days again and DTC is over 20-25 days
lol
at some point the shorts will stop winning. Under 5 for now but math is still math.
wti has to go to under 45 and/ or EDM over 15+ for the next few years for current price to make sense. If not, divided yields will drag this higher. I bet we hear more about it on the 7th, and if so, the days under $5 will have a hard time carrying on. Incredible it has got this low, but this is the effect of a multi year washout, pushing down a spring.
Reminds me more and more of TCK-b, the lower they push this.. Just playing out a few years later for EP equities. However, the valuation here is far beyond anything that happened in 2016 commodities.
My first buys in this we’re in spring 2018 for a double from 13-26.
But now, it’s multi-year multi fold returns ahead from these levels. And that’s just with 55-60 oil. So either oil goes to $40 and diffs go to 10-15+ for years, ...or The pendulum will swing. Shorts can’t defy mathematical return percentages like the dividend yield that is coming in time here at these cash flows.