Dear God, there is no reason for this. Crude oil should not be trading at $93 a barrel. Why? Because of CAT and better than expected performance?
You want to see that performance get clobbered? Send crude back to $100.
This is a delicate balance, yet jackass pit traders are handling it like a grizzly bear in a room of fine china.
I have sworn on my honor not to cover UCO for another day. I’m now hearing that Spain’s deficit reduction targets will be missed by a long shot.
There is not enough liquidity to sustain Europe. It doesn’t make sense to be long oil at $93 when four massive European countries are on the brink.
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somethin doesnt feel right,all the way around. shit like this,i just take two steps back, and watch the fight,step in,you get punched
Finally picked up those ERY shares I’ve wanted this morning ($13.55). Bumped up real nice and then came crashing back down. Man, this market is not for the faint of heart. This market is like a kid with ADHD that just drank some Jolt Cola…all over the place!
Cain,
maybe GS is tapping it jsut enough to get specs and some techies on side again so that GS et al can unload their tankers and be flat the physical?
thats just the cynic in me though.
I sold off my entire AWK position for $30.54.
Looks like maybe the mkts pricing in some sort of Fed intervention/short term inflationary jolt. the spread is now 2$ wide Dec crude vs Jly. Gold exploding higher. Looks like a Fed announcement could coming to a theater near you. QE3 – focusing on mortgage backed securites.
QE3 may be the IMF request Eurozone is looking for.
What?
Where is the QE3 bullshit coming from? How many times does Bernanke have to say “inflation is a problem here” for traders to believe him.
The EU has a euro denominated problem. Printing dollars does not fix a euro denominated problem. The Italian government can’t pay its creditors in fucking dollars.
A few months ago, I thought the Fed might possible trade dollars for euros with the EU banks and then reinvest those in European debt. But now it doesn’t look like European banks have any euros to sell.
The Fed is not going to be able to fix Europe. If they ease, it will be after a major blow out takes down half the continent and commodities/stocks drop 30-40%.
That’s when they’ll have the breathing room to print. Printing right now does no good and will just spike input costs further.
UCO up another 4%, shit …
I’ve taken a massive beat down in this position, which just a month ago I would have thought was impossible.
I’m down almost 20% for the year, thanks to a combination of UCO and BG / CCJ sucking horse cock.
But what’s another day or two?
we better pray that those horses don’t cum and sprayed us with their massive amount of liquidity …
There are many reasons for oil to turn right here. /CL 200DMA is right above and if you look at a 1 year volume profile you will see that /CL is right on the edge of its current auction bracket and bumping into the next one at around 94 even. Additionally if you follow MESA Sine Wave cycles which /CL has respected religiously for quite sometime, you will see that cycle resistance has printed. I’m looking to get short UCO at /CL 94.93. On a pure technical basis a short argument is pretty strong here, throw in the fudies which Cain expressed above and being short oil at these levels is pretty compelling.