OILY TV

Markets continue to trade near the flat line but the internals have come in from the 2,000 more winners to the more neutral number of plus 1,200. Leading sectors today include internets, semis, airlines and small caps. Energy continues to be a drag on the SPX and its probably a time to dip into the energy patch on a scale basis. Any chance of a hurricane or two in September? OIH and XLE probably both at good spots to dip or sell puts.


Comical debate on CNBC between a guy from the American Petroleum Institute, John Felmy, and a woman, whose name I didn't catch, about the pay of the CEO's of the guys in the oil industry. John's claim is the guys deserve $50,000,000 plus pay packages because the value of the stocks soared over 50% during the past year. When Maria CC asks whether the increase in value has to do with the increase in the price of oil the answer is, NO WAY, these guys have to manage the companies.

Well if any 0ne remembers, Lee Raymond, one of the CEO's whose pay package is in question and the ex CEO of XOM, every time he came on CNBC to discuss the price of oil he said "I really don't understand why the price is so high and I expect the price to go back down to the $28 area." So either he was deliberately lying to the public or had no clue about the market for crude oil. My guess, the latter.