OXY vs LNG
I see an “unsustainable” uptrend in LNG (Cheniere) chart, but lot more smaller frequent corrections in OXY.
Trying to understand what’s behind Warren Buffet’s love for OXY?
I don’t own either OXY or LNG, though I was eyeing a position in OXY a couple of months ago when it was in the mid 50s, and I’m sore that I missed it.
And crude oil is showing its strength, though might be ripe for a correction as it neared 85 today.
At what levels would one buy OXY or LNG or both, assuming a dip in oil and/or a correction in the broader markets?
Of course it is also possible that the divergence happens too … meaning oil continues to rise, recession evidence also strengthens, and Fed is forced to raise rates to counter the inflation, meaning broader markets fall further and the stagflation grows.
I’m eager to see if any tricks are left up the Biden admin’s sleeve to push oil down once more.
Thanks in advance.
GL
Not specific to those two tickers, but I am seeing a lot of things lining up for a very, very sharp downward movement culminating in September. I think stocks, energy (oil/natgas), gold/silver, commodities etc. will see a very rough time. Energy will hold up the best, with gold/silver getting hit the hardest. At the same time, bonds and USD will spike higher. End of September will be a magnificent buying opportunity, but will feel very very hard to actually pull the trigger.
Personally I am now mostly in cash, waiting for September. My guess is OXY and LNG will be a be better bargain around that time frame as well.
Thanks Gus!
Here’s the general update tonight from Gareth Soloway.
https://twitter.com/GarethSoloway/status/1689451244861984768
GL