February 1, 2010
about stocks: CHK, DVN, EOG, APA, APC, WMB, EP, OXY, MRO, XOM, CVX, BP
Not factored into Mr. Miller's prior analysis is additional fact that China will De-Value their Currency and prompting Commodity buying Across the Board.
Mr. Miller expected this later in the quarter, but sooner aligns with other factors like extreme weather, domestic demand improvements, among other factors. Capital has moved out in front, faster than Mr. Miller had expected, further squeezing the shorts out and forcing them to hedge up across the board.
Every experienced hedge fund and financial institution knows when to flip out of the artificial short position and go flat, or in this case get long the commodity. We may have a few laggards that will get hammered for staying short, but that what we call free markets.
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