9/28/2006

Oil stocks may not be the best shorts now

A reader has asked my opinion on shorting oil stocks after this bounce. In my opinion they may not offer a good risk reward at this stage. The ideal time to short was a quarter ago. Now many are down more than 25% from their quarter ago level. Most likely they will spend lot of time in range. Alternative energy plays, ethanol, solar energy might be a better play probably on the short side.

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