When Buying The Energy Dip Goes Wrong…

"Did that go the way you thought it was gonna go?" "Nope."

Do you have any idea what BofAML’s institutional clients have been doing?

Probably not. And generally speaking, you probably don’t want to know.

But you might be interested to know what they’ve been doing in markets. And let me just tell you: They’ve been buying themselves some energy stocks. Specifically, they bought $212 million worth of them in the week ending July 24, capping off a five-week buying spree.

As the bank notes, the upturn in the following chart is basically down to institutions, as hedge funds and private clients have been net sellers of the space.


And here’s where it gets amusing. Consider this from BofAML’s note:

This is the longest Energy buying streak by institutional clients since August 2014.

That obviously leads directly to the following question: “well how did that work out for them?

Here’s how:


Or, summed up:


For what it’s worth (which probably isn’t much given that this vehicle is a complete shitshow), USO saw $164.7m in outflows last week. That was the 4th straight week of outflows and came as crude surged…



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