What: I'm beginning to sound like a broken record. LINN Energy LLC (LINEQ) and LinnCo LLC (NASDAQ: LNCO) are making another double-digit move today. At least this time it's to the upside, as both were up nearly 15% this afternoon after surging yesterday, too.
LINE Price data by YCharts.
Today's move higher is likely a small combination of factors. Some of the bullish buying is a follow through from yesterday's big move, which saw both LINN Energy and LinnCo shoot up by more than 25% by the time markets closed. In addition to that, there is overall bullishness in energy stocks being fueled by the fact that oil prices are not dropping again and are, in fact, up about 2.5%. Some of that is potential bottoming in the oil markets as well as the fact that crude inventories declined by a smaller than expected 800,000 barrels.
So What: In the grand scheme of things, today's move is nothing but noise. As we see in this next chart, despite all of the double-digit moves in the past week, LINN Energy and LinnCo are roughly flat for the week.
LINE Price data by YCharts.
That said, it does look like the bottom might have been hit on December 15. However, that bottom could be broken if oil prices resume their downward spiral.
Now What: It's hard to argue that LINN Energy and LinnCo aren't ridiculous bargains today, even with the bounce in the last two days. That said, there is just so much uncertainty in the market that anyone buying at these levels needs to be comfortable with a lot of volatility.
