Mathman Prophecy

Chesapeake Energy Unable to Rally Even After Positive News

Look at a 5 year chart of ticker GOLD compared to ticker CHK. As of July 2008, CHK was up over 250%, and GOLD was up 250% over those 5 years as well. Now, GOLD is still holding at close to 250% return, but CHK is down about -15% from 5 years ago. So either GOLD is about to plummet (I doubt that due to the absurd increase in money supply) or CHK will soon start closing the gap, after all commodities have value too, even though they are tied more closely to industrial demands which are currently down, and they also hedge well against inflation. Looking forward, CHK may have some downside in the short term, but anyone shorting this stock should consider investing with Madoff.