I am close…ever so close…to putting on a feeler position in SCO. I’m sitting on Twitter, trying to coax myself into the pool.
It is difficult. Oil prices are too high. But I recognize that they can still be too high much higher from here.
In the past, I’ve been a little early to the game, and held a little too long – or too short. It’s a tough wrap, because oil should be in the $70′s. Maybe, if you are Po Pimp, you can argue for the $80′s.
But $90 oil is just stupid. It makes no sense. We’re seein a global slow down, so the key input cost to all productivity is prohibitively expensive? Sure…
So the question is – will oil get into the $100′s again?
I saw an article today from CNN, saying just that. QE and Iran – the same old argument; never mind its abject failure before now.
If these kinds of people are staking their reputations on higher prices, it makes me feel better. I’ll probably slap on a small position, but I want to see us past the morning first.