I use the O&G trusts as an investment vehicle (as opposed to trading
vehicle) for both dividends and capital gains. I was heavily invested for about
18 months until closing out everything a few months ago as trust prices, crude,
and NG all went parabolic. I am watching the sector for a reentry point but it's
not close yet.
NG is remains relatively high in light of fact that in-ground storage
levels are at a 5 year high. I think there's still a lot of hot air in the NG
trusts. Once NG returns to a sustainable price, the NG trusts will take a couple
of months to finish passing through the lower revenues.
----- Original Message -----
Sent: Thursday, November 11, 2004 7:20
AM
Subject: Re: [RT] Time to sell
The semiconductor index (SMH) put in its high on
11/3 and after trading within the range of that bar, has begun its
decline. I believe it will trade at 31 before turning back up. The puts have
been excellent for this trade.
The natural gas trusts are a mixed bag - some
going up - some still declining. The weekly trend is somewhat troubling as it
is down but, if you select the right ones and right time, these are excellent
trading vehicles.
Jim
----- Original Message -----
Sent: Wednesday, November 03, 2004
11:52 AM
Subject: [RT] Time to sell
It's time to sell the semiconductors again and buy energy
stocks. I expect
most of the semi stocks to begin a decline in the next
two days. Puts on the
SMH are reasonable and a good way to play the
move.
A number of Natural Gas trusts are also moving into a buy window.
Last month
I made 10% trading these stocks - and if they don't go up,
they pay a 10%
dividend monthly.
Jim White