Stock Market Commentary by full-time trader and best selling author Bob Kudla AKA "BobLovesHawaii"
Friday, October 22, 2010
Hedging oil by going long refiners?
I am always looking for ways to hedge oil prices. Typically I buy SCO, DUG, and/or ERY. But I am I am intrigued with Calumet. It pays out $1.84/unit on an annualized basis, or approx. 8.7% dividend yield.
It tends to strengthen as USO stalls and falls. My view is oil will not run up as I expect the metals and miners will.
I will make my first buy where indicated on the chart.