Portfolio Management for December 5, 2013

As we can see below, the MHR trade was closed yesterday. Company-specific developments must be at play here, because higher oil prices should have boosted the stock price. We can see below that the EV pattern is very bullish.

I think shareholders are expecting some drilling news, which some are afraid could be bad. If it is bad, then we could see a more severe price pull-back such as the one in early November, visible at the left of the EV figure. This means that MHR is at most a speculative investment now, even though large players believe the news will be good.

I am not eagerly trying to enter new trades. The next two days will be volatile and since we do not have a clear market direction, I think I will keep the portfolio trades on a slow pace until next week.