I follow Doug Kass on Twitter, and he is very much a HiddenLevers kind of guy – macro ideas driving trading and investment decisions.
I have previously said the Libya tensions were mostly baked in for Oil prices. And today, the headlines are still rife with words like Libya and uncertainty, yet Oil prices are receding quietly.
And the smart money is exiting the building.
I used HiddenLevers charting to put Doug’s plays to the test. You can see that the automakers were hit pretty bad, and are springing back, even just on the little tick down in Oil Prices. I found a couple other auto industry plays using HiddenLevers screener that have significant inverse correlation to Oil:
Commercial Vehicle Group (CVGI) has an Oil Impact of -0.46
Quantum Fuel Systems Technologies (QTWW) has an Oil Impact of -0.36
Automakers are the obvious plays, but if you miss their rebound, don’t forget about the auto parts companies. They benefit from normalizing Oil Prices too.