The shorts have alot of ammo at the present. The markets and economy are fttted up big time. The price of commodities and assetts are falling and total debts are rising. The only out for the above is inflation. The whole world is taking up q/e by pushing cheap money out to the world. This in the end will be the sweet spot for longs. Assets and commodities will start to RIse and get additional fuel from the shorts covering. I expect to see the ppt team out soon putting a floor in the market. Now will this help o/g co. Not at 1st but with cheap gas the American consumer ,the engine of the world, will be out in force spending. This wil crank the whole cycle again pushing oil back towards new highs. The other thing longs in the oil biz has is a finite resource on their side.
gas prices in california are still 3.85 a gallon . so were not getting much of a break on price , even though we have had a dramatic drop in price per barrel of oil . want to be in commodities for sure if qe 3 comes down the pipe. bernanke needs to weaken the dollar a bit so that our goods arent so expensive in other countries . and make a stock market rally so people at least the ones who own stocks can feel a little richer and start spending . right now i aint spending anything i dont have to .not while im losing money .