No pain, no gain… I guessNobody said investing was easy.
I truely believe what we are experiencing is a forced margin call on O and G stocks.
Bulls know what's just around the corner with Q2, and heavily invested with little support funds. Hedge funds are able to ravage the market on news that really shouldn't impact these stocks that much, all because investors are still experiencing PTSD from the covid market collapse. Mass sell walls and some sacrifice selling combined with shorts and naked shorts all in the mix - and the whole O and G sector is suddenly down %15. Really, it's rediculous.
Commodity prices are very strong - anything above $50 for oil and $2.50 for NG is good business - right now, we are above $70 and $3, and currently in EXCEPTIONAL territory.
I'd like to see shorts require a financial upfront cost like margin, I'd also like to see selling and then re-buying the same stock within a certain time frame very heavily taxed - particularly outside of the retail investor market. Trading from one company to another is trading in my mind, selling to drive down the price and then re-buying cheaper because of that coordinated action is not right, and needs consequences. This kind of selling has nothing to do with the companies, management, assets, debt, or anything other than SP manipulation - it's rigged and no different than cheating at the casino rather than investing. It may sound like a conspiracy, but I believe it to be true.
Watch everything come roaring back come Q2 - the same money that left the sector will come right back in, just at a cheaper price for the big run-up.
GLTA