Sometimes I regret being an energy focused trader, because frankly, nothing much has been happening to make an energy trader happy -- crude prices have been range bound, stocks have had limited runs and those that have run are looking tired at their highs.
Not that I think things will stay this way for long -- one of the plusses of being an energy focused trader is that you can depend upon volatility returning -- you just have to wait around a little. This is that waiting period.
So we're forced to move away from the big-themed ideas that have kept us interested through much of 2013: Domestic exploration and production companies will languish as the fourth quarter reports are being prepared; production numbers will likely again be through the roof. We'll talk more about that as the numbers are revealed, but there's a reason that West Texas Intermediate prices have declined 7% in the last week and a half with no apparent catalyst.
Refining has been another big themed idea of mine through 2013 and into the new year, but with talk increasing around an end to the crude oil export ban, those shares are going to be rising but dangerously so, dancing on a knife's-edge in the near future based on unpredictable government action.
What's left? Well, from a trade perspective, there's obviously one sector we need to do a deep dive (pun intended!) and try to get some perspective on even to trade around a position,…