28
Sep

Wrap Week Ended 09/26/08 (In Progress)

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Energy Sectors Underperformed The Broad Markets. Unless the index in question has exposure to the refining patch, energy looked pretty horrible again last week despite only small moves to the downside for oil and gas. My sense is that this is largely due to end of quarter last minute selling. If you look around, anything commodity related was used as a source of funds. Ships took it on the chin as did coal stocks (the SEA shipping ETF fell a whopping 15% last week while KOL (the coal ETF) got sacked for 14%. See updates on these in Monday's piece.

Natural Gas Had A Pivotal Week. I know it doesn't look that way now but we had the Chesapeake news (see the note here---) and another dip in the gas directed rig count, and a smaller than expected gas storage injection (See Friday's note). The oil service names with drilling exposure were hit extra hard shortly after CHK curb its enthusiasm for growth and this will be welcome relief to many onshore producers as others follow suit and recent rig dayrate escalations turn back south.

 

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4 Responses to “Wrap Week Ended 09/26/08 (In Progress)”

  1. 1
    zman Says:

    Emergency Economic Stabilization Act of 2008:

    http://www.marketwatch.com/news/story/bailout-bill-unveiled-heads-house/story.aspx?guid={6209DA02-EC8E-4107-B78A-1B395F1A462E}&dist=hpts

  2. 2
    BirdsofpreyRcool Says:

    a lot of caveats to the “bail-out.” watch out for unintended consequences… this undermines contract law, carves out money for special interest slush funds, dilutes the equity of participating companies, and makes it less likely it calm the markets. hope i’m wrong about all this. But, it needed to be a backstop that banks were willing to use to really work. i guess a straightforward bill is not really possible in the current political climate. too bad.

  3. 3
    zman Says:

    Here ya Bird – I skimmed several sections of the 110 page draft. Lots of adjectives in the executive compensation section that can mean anything. Adjectives in a lot of places in fact in place of objective statements and numbers. A vote on this is not a lock yet either.

  4. 4
    BirdsofpreyRcool Says:

    I don’t know if we will get another clear shot at this. Wonder if bad legislation is worse than no bill. The markets will tell us tomorrow, i figure. Futures are negative, but that can change quickly.

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