Curde up 10.00% today 11-04-08.. $70.03

Discussion in 'Energy Futures' started by Aaron Copland, Nov 4, 2008.

  1. Guess all that rate cutting and money pumping will stoke inflation.
     
  2. Fah Q

    Fah Q

    Wait? This ISN'T an Increasenow thread?? :confused:
     
  3. jsv416

    jsv416

    IMVHO there is no way oil should be priced as cheap as it has been in the last week. I have been adding to my DXO long position. Wouldnt it be something if oil surged after the election? hmmmm.... some tinkering perhaps??
     
  4. Dustin

    Dustin

    Interesting...what is Whey quoted?
     
  5. It'll be down 10% tomorrow. Welcome to volatility!
     
  6. 3 things, first look at a monthly continuation chart. take the late 1998 low of $10 and the 2008 high of $147 and draw a fibonacci retracement. The 61.8 area has held very nicely as support.

    Now draw a trendline on the same chart from the 2003 low to the 2007 low and it crosses the same area as the fib support.

    Also note that crude has a recent correlation to the S&P of like 80%. We should get a decent short covering post election relief rally here, that should bring crude along with it.

    As far as oil being too cheap here, I ultimately think crude will hit $40 within 12 months or less. The global decimation of wealth will have longer lasting implications to commodity demand, my opinion of course. Commodities always overshoot the upside in a bull market, and the downside in a bear market.
     
  7. The Goldman Sachs energy desk is churning things around in order to boost their bonuses!
     
  8. Crude has broken through the 61.8% fib support now, if we settle sub-$61, my next area is $54.70 followed by $50.50
     
  9. No more inflation I guess?