First post on Chesapeake Energy [CHK]

A recent anonymous comment mentioned Chesapeake and so I decided to look at the chart.  I'm not surprised to see that it just put in what looks to be a capitulative unicorn tail dip.  The chart below is obviously in log scale but note how it was 5 waves up into the peak and now 3 waves back down but not to a lower low.  Smells like a deep vee 2nd wave to me.  At least, that's what my experience tells me the odds favor.  Even if the recent bottom was just the bottom of 3 of C, we should get a very strong bounce to the $9 range before finishing off the bear market.

There is nothing and I mean nothing fundamental about this kind of collapse folks.  This is just good old fashioned human herding in action.  This past Thursday they hated CHK at $3.56.  The shares were headed straight down as if the company had just announced it was going BK.  All kinds of fearful fundamental reasons have been given for why it makes sense to trade this low but nothing has really changed for the past 6 months.  All we have seen is volatility in oil prices and volatility is not a fundamental. 

Volatility cuts both ways, fundamentals don't change with the wind like that.  The oil glut will take care of itself soon enough.  It always does because we are hooked on the stuff.  I wonder how few people understand the impact on planetary carrying capacity that access to all of black goo has provided our species.  Oil represents hundreds of millions of years of stored sunshine lying beneath our feet for the taking.  Oil is used for everything from fertilizer to fuel to run the equipment that tills the land and sows the seeds and reaps the harvest and produces products and then distributes them.  If oil was cut off for a year, 80% of the global population would necessarily starve to death.  That's how hooked we are on oil.

Buy low, sell high.