Mark Holder
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Chevron Rallied Too Far

While OPEC not reaching an agreement regarding production freezes in Doha over the weekend shouldn't surprise many, oil and oil related stocks rallied big time into the meeting. One such stock that rallied too far is Chevron (CVX)

The energy major needs oil prices above $52 to be cash flow positive, yet the stock has rallied to highs from last summer when oil prices were much higher. Expect a big drop in oil prices tomorrow and stocks like Chevron that have rallied the last couple of months should sell off. As oil prices head back below $40, expect the stock to head back towards the lows. 

Disclosure: No position