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Friday, September 6, 2013

MXC


Oil hit 110 today, and we got the first shot of what will likely be a bunch of micro and small cap oil companies making big moves. The independent oil and gas industry is full of small float (MXC here has less than 1 million shares floating) oil companies that, when the price of oil moves up, get volume and really start to take off. If you catch them right, you can get enormous gains; even if you don't catch them right, you can still get respectable gains. This is a very risky trade, as these will come down faster than they went up, but with the price of oil rising over 110, these will start moving. As a disturbing after thought, this also usually occurs just before the rest of the market tanks badly.

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