Yesterday we posted here a link to a document published by the BlackRock Investment Institute in which they stated that they were watching carefully developments in LENR technology as they try to evaluate the future of the energy markets.
For a long time we have discussed here what might happen in the energy markets if people start taking LENR seriously. Now we know that BlackRock is doing so it makes me think that there is more of a chance that perhaps some of the movements in the energy markets could be related to expectations of LENR hitting the markets sometime soon.
“As of the end of January, the average stock in the Energy sector had 9.88% of its floating shares sold short. As the chart below illustrates, this is the highest level of short interest for the sector since at least 2008.”
Also Today Liberty Newspost posted a link to this article from Business Insider titled “Wall Street is betting against energy companies like crazy”. This article quotes the Bespoke IG article above and also notes,
‘In an afternoon email on Wednesday, NYSE floor governor Rich Barry wrote, “By the way, according to our contacts on the Street, there is an inordinate amount of ‘Street Buzz’ going around that there is so much short selling in energy stocks being done by hedge funds that some stocks are becoming hard to borrow (!). It is a hugely crowded trade at the moment.”‘
Is this activity connected with LENR? I don’t know how it’s possible to get a definitive answer to that question, one way or another, but there certainly seems to be significant sentiment that energy markets are heading lower, even thought there was quite a rally in the oil markets recently (although it has dropped this week).
This all makes me wonder what would happen in the financial markets if it was demonstrated that a commercial LENR plant was operating successfully. From everything that Andrea Rossi has said, it will be at least a year before that happens. Meanwhile, there will likely be people who have confidence in LENR as a new and superior energy source placing bets, and perhaps we are seeing some of this betting playing out in the markets already.