on Yahoo Finance. Based on today's prices, oil should be at around $70-72.
If you are short now, it is now wise. Just like it was not wise to be long in December. Oil will continue to move up due to rig count drop and declining inventory. Production is going to be dropping for many weeks to come, that will be supportive of oil and USO. Also, summer is just around the corner.
They are saying, "Oil can't sustain this much of an spike," "Saudis increase production," "How long crude can ruin your portfolio." I guess it will never end. Someone is always negative about good things happening.
Hopefully, this is the last of the build. It should be draws going forward.
Sentiment: Strong Buy
There earnings are going to be horrible this quarter. The EPS has been cut to virtually zero for 2015. This is crazy.
Just like last night, oil traded down to $50.15, so this morning, USO buyers jumped in for a little gain. The short-term trend is still bearish for oil. When it could not break $54 on Tuesday, it became bearish to at least $47-48 range.
The dollar was up big yesterday and is up again today, supply is horrible, and there has been no sign of relief.
DVN is trading at a 34 PE. This thing won't go up when it was trading at a 15 PE. These companies are going to have bad earnings this time. I wouldn't touch these things until we see oil move back up.
Sentiment: Strong Sell
There is no catalyst for oil right now. Shorting seems to be the best option.
There is just no catalyst for oil right now.
This puts a damper on the rally for now. I'm going to wait a couple of days and see what happens.
So, any build of lesser magnitude from EIA will be positive for oil prices.
SCO was $24 in June 2014. If you sold in August, you made 25%. If you held until December, you made 316%. Oil is reversing and headed higher now and in the coming months. Just be patient, and turn off the TV.