Sunday, September 14, 2008

Oil Bounce and Bottom

Right now on the overnight futures exchanges Oil is trading at about 98 bucks. Gasoline is dropping like a rock. I know all the news casters are hollering about high oil.

This too shall pass.

I am a bit worried as a trader.

I think we could see a big bounce if it drops too fast too soon. Markets require time and volume to stabilize and we have seen neither.

I don't like how this smells. We might go to 90 bucks but since there has been no firming at all it could run up to 120 or 130 in a few months. I would rather it trade for a while at a hundred bucks before it drops too fast. I know there are no fundamentals holding it up, but we need an orderly market.

I'm going to arrest this one for disorderly conduct.

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