Buying Crude

I just bought 'em at 5355, 5357 and 5361. Me thinks we see a 57 handle before we see 52's. In any case I've got sell stops working a buck lower.

 

Is this a gut play?

 

Those are Feb contract prices. You do know that the Feb contract expires for trading in under a week right?

 

Well,

The inventory news is priced in now. Presumably GS "adjustment" of their indexes has also been priced in . So, what's the downside for the rest of the week...

1. Bush does something clever. lol
2. OPEC decides to increase production -- about as likely.

All other catalysts that I can think of are negative...

Good point on expiry though. Everyone will have to roll or take delivery...

 

Refer to my post here:

http://www.elitetrader.com/vb/showthread.php?s=&postid=1320289#post1320289

Still a lot of unwinding to do with under a week left.

The massive OI on the Feb contract had short written all over it weeks ago, shame on me for not going in on at least 10 contracts. Would've been a nice way to start '07..

 

No. Fib play.

My gut thinks the stuff is going to collapse.

 

Thanks for the heads up. My clearing firm asked the same question. I'm clueless about energy markets!!!

 

If you bought CL (Pit Traded) I hope you have a few Tankers to take delivery on Feb 1!

If you are long QM, then you will be CASH settled.

surdo

 

Hmm ... I wonder if it'll do this?

The Fibs on the 60 min mark a 1:1 of the prior drop from 57.7 to 53.8 (so 56.2 to 52.4)

 

I'd have to say not listening to your gut is pretty gutsy.