Contemplating an Oil Trade
Thinking of the best way to short oil, as the new price target for it is $37.
Hmmmm…. Short DIG, long DUG? Short OIL, USO, OIH?
I’d like some input on this, please.
Thinking of the best way to short oil, as the new price target for it is $37.
Hmmmm…. Short DIG, long DUG? Short OIL, USO, OIH?
I’d like some input on this, please.
Kat,
I’m an oil bull!
jog on
duc
Duc,
Saudi Arabia asked for $75 🙂 they told you in plain words they want $37.50 (have you ever been to an Oriental bazaar?)
They asked for $100 previously, they got $50.
Aside from this “anecdotal” evidence, I think it has to go down based on inventory build-up.
Btw, I’m not sure I believe in peak oil, as it’s not actually dinosaur cr*p. Though I think it’s dangerous to keep pulling it out of the Earth, it’s like a protective layer, and we shouldn’t be depleting… probably. We may never know.
Anyway, I’ve been trying to avoid oil trades, but I feel pretty strongly about this right now. I may still just watch it go down, trying to exercise caution.
USO seems like the purest play there, less exposure to overall equity moves.
I’m a medium term oil bull – short term oil bear – long term alt enegy bull.
I like short USO.
Lenny,
thanks for your input. I’ll read the USO prospectus now, thanks.
Dollar may have put in a top, of course, so that can screw up this trade. This is one of the reasons I’ve avoided oil – so many factors influence it.
Will you be shorting oil since you’re a short-term bear?
My broker doesn’t have USO to short.
I may have to short DIG instead.
I like short DIG but only when I’m betting on the entire market going down. Oil down market up won’t help.
Today is case in point.
USO would have worked much better.
Just wire me some money and I’ll short it for ya 😉
Why is it everyone asks money from me? 🙂
Didn’t you see I LOST money last month? arghhhh