BNO and the Oil ETFs

Discussion in 'ETFs' started by empirebuilder, Mar 1, 2011.

  1. I'd like to begin to solicit some ideas, thoughts and technicals on some of the crude related ETFs. I am in BNO at an average of $73.15 and riding the tail end of the most recent surge. I have heard some speculate a run up to $150 a barrel with some reasoning behind it. My concern is that this is speculator driven and the actual fundamentals for crude do not seem to favor a shortage of inventory. I realize that the political environment is the concern but with moves from SA to pacify citizens and the seemingly capable regimes waiting in the wings in Libya... I doubt that a country that depends 98% on oil production and services will slow enough to put pressure on those fundamentals. I know Oman is another variable but a complete implosion seems unlikely.

    I suppose the long and short of this thread is to say that I do not think this oil rally will be long lived. However, I do not underestimate group think in the marketplace --not to mention the computers trading ;) and it's ability to outlast the stomach of those who appose it. So I am trying to time an exit or perhaps continue to ride the crazy train while simultaneously capitalizing on correlating trends such as a possible run up in SCC if oil goes parabolic.

    Thoughts?
     
  2. Place a stop below 72.33 (recent swing low) or higher if that's too far away and ride the uptrend.