Thursday, October 15, 2009

Oil Gushes Higher

OK, I wrote the kind of corny headline financial editors love.

One look at this chart, however, gives you the story. Oil is looking very hot right now.

Now look at the weekly chart. Either the economy is going full bore or the speculators are back. Take your pick.

Or maybe it is a knock on the greenback? Doesn't' matter to me as both the newsletter and the fund went long days ago.

4 comments:

JimJinNJ said...

Michael--
I'm looking forward to your new edition--I didn't even know you a first edition :)

When you talk about "the speculators" driving up the price of oil, how does that happen? Someone is always on the other side of the trade. Are they losing their shirts and pants--who are they?

If this can be done (profitably), why are other people running up (or down) soybeans, nat gas, anything?

Quick Takes Pro said...

That was Washington's reason - the speculators. It is also saying something like "profit taking." There is someone on the other side of that trade who is buying.

But in any market, when there is a trend one side or the other is more aggressive in their activities. What is bought is always sold so you will likely see more trades taking place at the ask in a rally than on the bid.

JimJinNJ said...

I got it. So...if this is really speculation, with presumably no fundamental basis, isn't there a great big short sale play in this kind of market?

I wouldn't care who would be holding the bag,spec's or my neighbor :)

GS751 said...

Just remember demand is at 2005 levels....