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Tuesday, July 22, 2008

Hurricane season-Refiner's rally?

It looks like it. Hurricane Dolly looks to miss the oil rigs, so buyers who grabbed the refiners sold them off at the end of the day. But the cost of of goods sold, oil, is going down, and isn't coming back.

So I think the refiners, finally, are done going down.

Valero (VLO 35.26), Tesoro (TSO 17.75) and Western Refining (WNR 9.47) have given shorts all the money they could handle, and have given the bulls, nothing but grief and aggravation.

At some point in time, somebody will think refining is a worthwhile business.

AT these levels though, they are worth a trade.

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