|<Last year, the slow water torture began in May and lasted the whole summer and into the fall.>|
I made some of my best E&P buys in September & October 2011 but my basket of E&P stocks were off more than 40% during that sell off. I saw the same think take place in 2010. The Oil price peeked on April 8th @ $113.05 w/ a quick snap back test @ $113.70 on April 29. Then oil continually fell hitting a low of $75.51 on October 3, 2011.
October 3, 2011 was also when I picked up my lowest priced lot of MHR at $2.74/share.
I expect the same thing to occur w/ the low perhaps in the low $80.00's. The difference this time is the huge QE stimulus from $US and $EURO central banks resulting in a 13% increase in money supply )close to $2.5Trillion. This should eventually result in higher Oil price (inflation) . . . unless both US and EURO go back into double dip recession. Then all bets are off and things could get ugly.