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entropycapital
May 5, 2020 1:20 PM

Refiners : Crude Recovery Play with limited equities market risk Long

CRAK/SPYArca

Description

A great way to play crude recovery is long CRAK - the oil refiner ETF vs short SPY (overall large caps). Refiners have better margins with low oil prices and looking at their margins is a good way to gauge the demand for physical. The ratio has broken 0.7 and I expect to see it at 0.9 or a 30% return as recovery gathers steam.
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