Re: Kramer on the Emerging Energy Rollover
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Cramer is a great contrary indicator these days.
Seems he's buying into his own BS on a daily basis.
He may have reversed his position, and is be likely short energy now.
The tell:
Oil Stocks Need Recovery Time (10/19)
By James Cramer
About this article:
Exxon looks like the bad-hands stock after a 25 million-share block caused big damage. We have to assume that seller will be back this session, selling more shares. These stocks need time to recover, so buy them at these low levels only if you can wait.
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just to clear up a couple of points.
1. Cramer is a bull. legally, he can only buy stocks, he can't short (sell what he doesn't own).
2. oil does not equal energy, although recent runup in oil did push energy stocks up, energy exposure is not necessarily oil.
3. IMO, in general, you don't want to sell energy going into a winter. what cramer meant could be interpreted long or short term, i don't know what he meant. i do however would keep energy (electric and gas) and utilities at least until the winter. at the first hint of a bad winter, energy should go up on speculation. moreover, because of higher gas (gasoline and natural) prices, revenues from winter heating bills are expected to be something like 25%+ higher.
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