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[viccarter]

At this time, I have closed all positions that I opened Sept. 29/30.

See: http://www.traders-t...?...st&p=732178

Whether my exit right now is timely or not, I do not know. Perhaps Friday/Today is just the beginning in some of these names, I am unsure. What I do know is that the results of these trades turned out really well. It came from the genesis of a thesis back on the end of August. My thesis was that burst up was impulsive and probably represented a change of trend on the weekly crude chart. I knew that move would need to be digested by the market, and I didn't know if it would take 1 week or 4 weeks or whatever.

Prior to the impulse move up at the end of August, oil and gas names had been trading lock step with crude. It is always baby with the bathwater with this stuff. Down is down and it doesn't matter what symbol it trades under. Now I could lie to you and throw out some names like PE, FANG, MTDR, PDCE, CXO, XEC, RSPP, and I could tell you all about these companies and why they are the 'safer' names, and I could give you all these details about the plays where their reserves are, and I could go on and on and pretend I am smart, but the truth is, these factors had nothing to do with decision making.

I bought the Sept. 14/15 low and the Sept. 29/30 low and timed them nearly to the day all based on my crude thesis. The truth is, I thought the 9/15 breakout in crude would hold better than it did, but it dropped back into the trading range. But when you look at it on a weekly basis, you can see it's just a long consolidation from the last week of August move up.

But after the mid Sept. move in oil and gas equities, you saw the names really diverge from crude and follow the overall market down. A good example is DNR, a company that basically operates old fields and stripper wells where most of the oil has already been produced and tries to squeeze out a few more barrels from each well. It's a pure play on oil price if there ever was one. Even at these levels, it still has a market cap of over a 1billion. It is low tech and low risk. Aug 31 closed at $4.34. Sept. 30 closed at $2.44. Absolutely no reason for this because oil was holding steady. I bought it for a trade on the Sept. 14 dip and sold and bought back Sept. 29 and sold this morning. Many other names followed this pattern in September, and there was an advantage if one saw this divergence and market dislocation.

Hopefully, these don't run away and provide more dips to buy and further entry points in the future.