Now fair value does not mean they can't drop from here, just that they aren't so grossly overvalued that the short side is the default trade.
WTI $38.65 down $1.80. This morning's multi-year low: $37.75.
XLE $61.79 down $1.71. This morning's multi-year low: $58.74.
XOP $34.59 down 79 cents. This morning's multi-year low: $33.29.
For the uninitiated FTFD is Buy The Fokken Dip.
From ZeroHedge:
Energy Sector Stocks Crash To 4-Year Low (As Credit Predicted)
The S&P Energy sector ETF - XLE - collapsed at the open to its lowest since October 2011... Of course, this should come as no surprise whatsover to those who watch credit...
Fool me thrice?
