November 10, 2014

Oil could go higher according to Doug Kass

The price of oil has fallen to levels below its 40-week moving average, an area that has historically resulted in some price-mean reversion back higher. 

Based on this, late Thursday I took small starter positions in Exxon Mobil, Chevron and Devon Energy. I picked these large-cap stocks because of their relatively strong balance sheets, which would be able to endure further reductions in the price of oil. On further oil-price weakness, I would consider adding some new names.