The super spike in oil is comming any day now, I can feel the fear in the market. This sell off in equities is in advance of what they know is comming.
Either Israel is going to bomb Iran or someone knows that we are about to lose supplies elsewhere. Is China hoarding as much oil as they can? Are we buying more for the SPR?
Are we about to face a failure of a major US bank? I don't know what the trigger will be that pushes oil up higher but it is comming.
Futures keep going lower, there is no end in sight to the selling in stocks. This started when the Dow lost 500 points in one week and the trend is lower. Everything in between has been a dead cat bounce. Last Friday was the worst day for stocks in ages and the best day for oil, ever.
Unfortunately, gold isn't hedging this spike in oil or decline in equities. Trying to trade a market like this is just crazy. There are no clear cut rules, everything that used to apply, no longer does. Rate cuts and tax rebates aren't working because oil has more than offset any benefit from rate cuts.
You might as well buy call options in USO and just wait for $200 oil, it's comming.
Baecorine, you're right, trading in this market is crazy. INVESTING in these markets might not be so bad. On days like these, just remember the 01-03' nose dive. All who invested near the bottom make a killing coming out of that in the last half of 03'. So go back to the basics... invest in the companies that continue to look strong in these times, keep a good balance sheet, and have good long term growth outlooks. A year or two from now you'll be damn glad you took a few lashes in exchange for the good times. Best of luck to all.
BTW... I hold a 14.80 base in AUY... now that we're flirting with that number again, I hope AUY takes a severe beating. Let it tank again so we can all buy more. Come Sept. I'll be thankful it had.