There is absolutley no fear in the oil and gold market. It as if the owners are getting more conviction as the price drops and stock prices deteriorate. That is a dangerous stance.
I still have a small USO and BTU position that are now underwater and I am glad I sold half at a profit per my post last week.
The question is do I step up to the plate here?
Nope.
I think Oil could drop into the low 50’s , even mid 40’s if the market stays strong. I would love to see a few more BIG down days in oil where the longs get washed out.
My feel is really weak these days mainly from my attention to other business so I must tread lightly.
From my tour of the web, lot’s of expectations for a bounce here in oil and gold.
Just anaother unwinding of a speculative bubble. My guess is 2nd or 3rd weak in Oct might see a good opportunity to wade back in. Where are all the peak oil theory advocates hiding? I think alot of hedge funds have been mauled recently and there are still substantial energy positions getting unwound. Interesting article regarding some death and destruction in the hedge fund community on page C1 in the WSJ today.
Go to stockcharts.com and type in the symbol $BPENER and chose 2 year time span. Then that sucker turns up below the 20 level you hit the buy button (if you dare).
pss.. dont tell anyone about it.. ;)