My short from last week on Oil has worked nicely. I had shorted about $50,000 worth at $99.42, and just now I am adding to that by selling about $29,000 worth at $95.21 (this is still the Mar '08 NYMEX contract).
I am putting a stop-loss in at $96.34 on the total position, which would still leave me with a profit of $1200 if it got triggered, which is what I lost in December on it. Hey, I'm not planning on being down here!
Oil hysteria is gonna calm down, the commodity stocks are getting hit, think we need to see oil back into the $70's. I'll try and keep increasing my position on the way down, and use stops to limit losses while maximising the profit.
Another thing that has got my thinking is that the US economy NEEDS oil to come down, and since I can't see any other way to avoid a serious slowdown, I think an oil crash could be the thing to do it...let's face it, something ALWAYS comes along to bail out the US economy/markets just at the right time.
Yours,
2and20
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