ITS the other way around, THEY are trapping longs!! today is good example. Read my reasons why.
First of all, the big boys already know there is going to be a severe market correction. NO one really knows when but its coming and you can smell it in the air. THE down wont close lately over 14k. THE europe news stinks really bad. THE ultimate headfake is the news hedge funds are longs at record limits. WHEN ever media is giving you advice to invest go the other way. I have countless examples. JUST watch these cnbc shows and fast forward they are 70% wrong and 30% right bad track record LOL.. WE now have huge production in oil local, and the only real way the economy can get better for main street is if the cost of energy is less. I REALLY DO BELIEVE WE WILL SE 75 PRINT ON OIL this year. I bought 100 30 puts on uso.
The reason reserves fell to 40 mln Ba last month is because we are importing far less oil in favor of domestic production. Whether oil goes down to high 70's later much later year is open to debate. Few think it is possible. Either way, buy the refiners for the divvy. Of the crack spread drops, exports will buoy the spread. After all, this is an international market. I can't find where this cruddy ETF has ever paid anything back to investors. Please correct me if I'm wrong on this but I don't see it anywhere. Increased gathering in the US has not had much impact to date on the price of Brent crude owing to worldwide demand which has also been dropping gradually with exception of China. Hey, even Carl Icahn bought himself a refinery and he must be right probably about half the time, isn't he? LOL.
Quite right, sherlock. There was a fascinating study done quite a number of years ago about magazine covers and how they are a contrarian indicator for the market and predict market tops. Whenever you see news about high stock prices hitting the cover of Time and Newsweek, it's time to sell. Likewise, and I posted on this earlier this week, the average Joe is always late to the party, so when you see individual investors moving out of bonds and into stocks (as is now happening), it's time to start taking profits.
Within the next month, Iran is either going to test a nuke out in the middle of the Iranian desert or Israel will attack Iran. Either way, when that happens, oil is going to skyrocket. Ganted, it may only be a short term knee jerk reaction, but it will happen. That is when you sell and move on, possibly going double short ETF. What goes up, must come down..... :)
That is an illogical choice you propose since I doubt you'd have one without the other. Israel has publicly stated its intended actions should Iran undertake certain actions. Our problem is we are poor listeners. As for next month, that isn't possible owing to the centrifugal time lag moving toward the weaponization process. We know the Iranians have the missiles. They will need some time to work the weaponization issue. So, you're time frame is not workable.
We've been hearing the Israel about to attack stuff as long as the oil is going back to $35 posts.
Both are just as useless and you can make big money without any of that garbage.
P.S. If a war does break out in the middle east that could be the trigger for market collapse and oil going back to $50, so both predictions might come true together. Personally I think neither will happen.