Saturday, June 28, 2008
Market's Zig and Zag, They Don't Zig and Zig
Crude Oil at $142.
The low for 2007 was just under $50.
I can't get excited about going long Oil here (irrespective of how dumb our elected reps might be in enacting "emergency" measures to "reign in" speculation. Duh! I thought we the U.S. practiced free market capitalism). Not that Oil could not go up from here, it is just that when a correction begins, it could be a real winner and at that time I would want to be able to be a buyer.
If you were hoping for an oil-led end of the world, my bet is you might have to wait a little longer. Not to worry, though. The U.S. housing and mortgage markets will lend a hand to you cheering doomers. Just be patient.
Not that Oil imports will increase - they won't. And not that the economy will improve - it won't. Oil does not need to be $140 to demolish the U.S. economy... anything over $100 will do that job well enough. But markets have a way of screwing the MOST people possible. Now that COULD be the Oil shorts, or it COULD be the Oil longs... but somebody is going to get a really good ass kicking - SOON.
A first rate banking disaster could make for an interesting Oil market. For instance... Does Oil go down more than the U.S. $ purchasing power does? This is going to be a very interesting couple of months for those of you making a living trading in the markets.
Good Luck! (You're gonna need it)
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 4:56 PM