Not too long ago, the oil bulls were talking about $100 oil. With Oil at $60 today, the bulls have given up. The oil and gold shorts are downright giddy.
The neck, nose and ear hairs are standing at attention at this point and I will be spending the rest of my alloted computer time tonight looking at some option trades for my fund.
Same goes for Gold. Have not heard much talk of $1000/oz gold. I will be looking here tonight as well and will be acting on this tomorrow.
Time to go back to my real job for a few days I think.
I assume that Bob Pisani has been on lately talking about the mess that is oil and gold. If not lately, tomorrow for sure :) .
To confirm, I was just checking in with DeGraaf from Lehman and he posted charts on the same issue this morning. Not a recommendation, but a piece of the puzzle I like to see. Here you go:
Yep, oil might be in a heap of trouble. Right now my system is telling me that XLE is entering into Bearish territory BUT it still can reverse, its not sunk yet. Its just taking on a lotta water or is that oil?
:)
Funds are selling commodities going into qtr end. Managers do not want to show alot of commodity exposure in their Q3 statements, esp. post Amaranth meltdown. Suggests markets could be overshooting. Oil in particular might be worth a look again in early Oct. IMHO
hey matt – agreed – I would love to see some real dislocation in the next week but am going to nibble tomorrow