Stocks Close Down Again; Oil Falling Again After Hours; Some Potential Oil Plays To Take Advantage Of In The Selloff

Stocks Close Down Again; Oil Falling Again After Hours; Some Potential Oil Plays To Take Advantage Of In The Selloff

Another day, and another sea of red for Wall Street. The DOW closed down 130pts., or -.74 percent, to 17,371; while the S and P fell 18pts., or -.9 percent to 2,002; and the tech-heavy NASDAQ lost 60pts., or -1.29 percent, to 4,592. Meanwhile, Brent Crude was essentially unchanged and closed at $50.90, while West Texas Crude climbed 20 cents, or +.42 percent to $48.13 — but, after hours this evening — both Brent Crude and West Texas Crude are falling with WTI now in the $47 range. Most of the commodities pros on the street now see the low $40s as almost a certainty; and, a fair amount are now saying oil may go as low as $25. Of course, there are others who argue that oil is a screaming buy and is way oversold. The truth is probably somewhere in between.

As I wrote last night, Carter Worth, Managing Director and Chief Market Technician at Sterne Agee — and, considered one of the best on the street — thinks the S and P could fall to 1,820 by the time all is said and done. Who knows whether we get there or not; but, these kinds of selloffs present opportunities and I am going to highlight a few companies in the oil/energy sector that I may take an investment position at the market open tomorrow (Wed.).

Remember, there are no guarantees, do your own due diligence and homework. I am not recommending any of these companies. This is just what I am doing in my personal portfolio.

All things being equal, I may start an investment position in Chevron, Southwest Energy, Whitting Petroleum (WLL), Comcho (CXO), Carrizo Oil and Gas (CRZO), SeaDrill Energy (SDRL). It is late, and I am tired, so I won’t go into my reasoning; but, understand, there are no guarantees in any of this — you need to be comfortable with your risk tolerance, time-table, etc. None of these are a quick sell for me. I am looking at a six-month or longer time horizon on these. Good luck whatever you do. V/R, RCP

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