VLO

Uh, one of my favorite shorts remains Valero. Valero, which right now is trading up about a buck 50 pre-market. Look at this trend line here. And this is more of a swing trade, but Valero again uh into major resistance, extremely extended, starting to put in negative divergences. Uh I do think that this refiner is due for a significant correction on a swing trade basis and I do have a position in this one on the short side with members of smart money uh stocks and ETFs.

Um, last night a vago is getting beat up because um, you know, there there was a decent report, but it wasn't anything. Wow. And then they also talked about 2028, how looks like it's going to be a stronger year. So the question is do we want half glass full where we're going to say okay you know what 2028 let's look at that or hey maybe there is a soft spot so we got to be careful anyway

Now, we have clearly seen that refined product margins have widened even further, so refiners such as Valero, Marathon Petroleum and Phillips 66 have seen huge free cash flows over the past two quarters, much of which has been returned to shareholders in the form of share buybacks or higher dividends.

In fact, what we have seen is that companies like Valeero are already benefiting from exports of refined products, in addition to the high refining margins that Sam talked about earlier. Thus, the names we prefer are companies like Valiero, which is one of the names we prefer here at Tortoises.