IMO high volume was the combination of short covering and Genuity Capital Market extending their coverage of O&G plays and taking position in CLL for their clients (see bellow the list of companies they cover in this sector).
The net Genuity purchase was 1.1 million shares. The CLL total trade was over 4 millions shares. IMO most of these were short covering as Spide suggested.
Last Friday and Monday a lot of technical annalist called for tradeble (10%) rally in Energy and Silver issuing the buying signals. Momentum change on Monday and most of big names (see sharky post) start to rally.
Today (Tuesday) we had major short covering from oversold condition.
No question that the Genuilty (Canadian independent investment banking firm) added to CLL 8% run. Most of the oilsand names were up 4 to 6%.
How long will it last? Nobody knows. If you want to trade this rally watch the oil charts and $US for the reversal.
If your time horizon is more then 1 year skip this comments and have a few good drinks of your choice.
Genuity O&G coverage list:
- Bronco Energy Ltd.
- Canadian Natural Resources Ltd.
- Canadian Oil Sands Trust
- EnCana Corp.
- Nexen Inc.
- Oilsands Quest Inc.
- OPTI Canada Inc.
- Petro-Canada
- Suncor Energy Inc.
- Synenco Energy Inc.
- Talisman Energy Inc.
- UTS Energy Corp.
