Watching the oil market today was simply too stupid for my brain to handle. It is ground zero of a frenzy that is being fed by the weak. This is the time when predators should be having an all you can eat Retail Trader buffet.
In that spirit, I dipped into a 5% margin balance, this being for the first time in years.
I added to HCLP for $41.32.
I bought more BAS for $17.76.
And then I threw some VOC on top for $10.90.
It is incredible – indeed almost unthinkable – but I have gone from being up more than 20% this year to gains inside of 5%.
Now is the time to press the envelope.
If you enjoy the content at iBankCoin, please follow us on Twitter
Well frign done. Finally somebody with balls on this site. Swing trading requires balls of steel… well done.
Not well done.The oil sqeeze is an attempt
to fuck Russia.Why would you bet
on a geopolitical situation when the
players have goals that only have
to do with the poll ratings.
This is spot on. The rally in the dollar and collapse of oil are the 2 things that hurt Russia the most. It’s not a coincidence that these things are happening after Russia started fucking around in Ukraine.
Whether or not this is a concerted effort to hurt Russia is pretty speculative. Remember that Russia has close relations with OPEC. Perhaps the US did convince the Saudi’s to drop the price per barrel to harm Russia. I tend to think this is a pretty complex plan so I don’t like the explanation. Besides, how does setting our own oil boom on the path to a bust help?
I tend to see the Saudi’s actions as more a statement to venture capital to slow down the rate of development of new high cost assets. They are reminding people that the Middle East has budgets too.
But it is in the mutual interest of the Saudi’s, governments, and economies alike to have $100 oil.
Cain, I’ve patiently stayed in the Bakken oil for over a year now. I haven’t not seen anything like this yet. I respect your opinion, so could you please give me your best reasoning as to why oil and it’s industry-related companies have been getting killed lately? II appreciate the response.
What djmarcus said below.
Boyaj, Bakken breakevens are ~80 a barrel, so that shit is the first to get hit. With that said, oilfield services should continue to do well unless oil falls meaningfully below 70. Optimizing wells helps increase margin and is more focused on as prices lower.
djmarcus and cain, thank you both very much for the response. One question, when you’re talking about the oil price, are you referring to the Brent or WTI? Wondering so I can have some sort of disciplinary trigger.
WTI
Brent is more relevant to European operations.