Recently, I bought some Penn West for myself and it is up. My goal here is to hold on for a couple of years and dump it if and when it breaks the $20 barrier.
Today I bought my wife some PWT. Oil was up in pre-market trading. I thought she might make a few quick bucks. It went up at the open but it quickly lost momentum and then retreated after investors heard Ben Bernanke speak. Oops!
I'll keep my fingers crossed and maybe I'll be able to extricate myself from this position soon. If she ends up with PWT as part of her portfolio, I won't be overjoyed --- but I won't be all that upset either. I'm sure this will resolve itself in her favour in the end.
The question is: When will she see an end?
Before heading off to bed I checked the closing figure for PWT. My wife was up a penny on her investment. Hey, that 's better than a loss.
Then I checked the price of oil in Europe. It is already July 18th in Europe. I learned:
"Oil also rose as confidence among homebuilders climbed in July to the highest level in five years and US equities advanced. Crude, which reached an intraday high of $US89.46, settled above the 50-day moving average for a second day."
I also read:
"Oil rose to a seven-week high on speculation that oil inventories fell and as a report showed US industrial production increased in June.
"Prices advanced for a fifth day as supplies probably declined 800,000 barrels last week . . . 'The economic data is pretty good and it's painting a better picture for oil demand,' said Phil Flynn, senior market analyst at the Price Futures Group in Chicago."
I failed at day trading but I may still come out of this smelling like Roses.
I figure I can comfortably keep about .5 percent of our portfolio parked in PWT. If the stock makes a nice push back to its former levels I'll sell all but an amount equal to that half a percent. I'll consider that money parked and leave it to its own devices for a few years. If it does well, nice. If something awful happens, who cares.
I'm off to bed with a smile gracing my aging face. (I'll keep you posted.)