I looked at Cameco last weekend as it approached support at $36 and thought about adding it. That support was tested on Tuesday and a rebound to $39.50 appeared. I will pass on buying that bounce. A new uranium company has appeared, Energy Metals (EMU). This is a ground floor opportunity but they don't have options. Could be an IRA candidate.
I considered McDermott as play on Global Santa Fe earnings on Monday but the MDR chart has no momentum.
I think we are going to see some weakness in crude in the weeks ahead and that
will give us some more targets. If no weakness appears we will continue to ride
the current horses.
Current Watch List
SNP - Sinopec
China Petroleum & Chemical Corporation (Sinopec Corp.) is an integrated energy and chemical company with upstream, midstream and downstream operations. The Company and its subsidiaries operate mainly in the People's Republic of China. The principal operations of Sinopec Corp. and its subsidiaries include exploring for and developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products, producing refined oil products and trading, transporting, distributing and marketing refined oil products, and producing, distributing and trading petrochemical products. Sinopec Corp. has five operating segments: exploration and production, refining, marketing and distribution, chemicals, and corporate and others. On June 21, 2005, Sinopec Corp. entered into an agreement with Beijing Yanhua Hitech Co., Ltd., pursuant to which Sinopec Corp. acquired 95% equity of Beijing Yanhua Hi-tech Catalyst Co., Ltd., held by Yanhua Hi-tech Corp.
Breakdown target $82.50
Buy OCT $85 Call SNP-JQ
UPL - Ultra Petroleum
Ultra Petroleum Corp. (Ultra) is an oil and gas company engaged in the development, production, operation, exploration and acquisition of oil and gas properties. The Company's operations are focused primarily in the Green River Basin of southwest Wyoming and Bohai Bay, offshore China. As of December 31, 2005, Ultra owned interests in approximately 148,007 gross acres in Wyoming covering approximately 230 square miles. The Company owns working interests in approximately 330 gross productive wells in this area and is operator of 53% of the 330 gross wells. Its domestic operations are focused on developing and expanding a tight gas sand project located in the Green River Basin in southwest Wyoming. During the year ended December 31, 2005, the Company's Wyoming production was approximately 87.4% of total oil and natural gas production on a thousand cubic feet of natural gas equivalent (MCFE) basis and 98.5% of the Company's estimated net proved reserves were in Wyoming on an MCFE basis.
Breakdown target $45
Buy JAN 2009 $50 LEAP Call AZH-AJ
OSX - Oil Service Index
The Philadelphia Oil Service Index is an index of 15 companies that provide drilling and production services, oil field equipment, support services and geophysical/reservoir services. This index contains companies like Halliburton, Nabors, Schlumberger, etc.
Breakdown trigger $175
SHORT Sept $220 PUT - OFJ-UD, Stop loss OSX $160