I put on -jan/+feb @ .51. Was walking into a meeting and saw things turning up so entered....looks like I should have waited to see if things were going to stay up, whoops.
Let's keep it simple, the lower oil goes the more pressure its going to put on the overall commodity index and stocks.....next major support is $32. If it breaks below that oil will be at lows not seen in more than 10 years...this is going to create a ton of layoffs in the energy sector along with massive margin calls. The good thing is maybe oil gets to $12-$20 a barrel and we gas at $1.25 a gallon. Guess we won't need hybrids and electric cars then. A fill up will cost about $15-$20
If energy just so happens to rally the markets should follow....with oil below 40 its just showing how weak the economy is
Right now in my area we are paying $1.77 approx. It will probably fall more of course here in the next few days. I think we have .40 in taxes a gallon. Something like that. As gas prices fall it is crazy to think about how much as a % you are paying towards taxes on that gallon. 30% :eek: Oh well, still much cheaper.
They can't let the market fall before 12/16/2015 FOMC. They can't let the market fall after 12/16/2015 FOMC.
I think that we should all take pause when trying to reconcile oil at $37 and the S&P sitting in the high 2000's...
None of this will create "massive margin calls", because very few people on this planet are silly enough to go long UWTI in an obvious bear market in Oil then gleefully add to their position as it goes against them because it lowered their average cost.
You of all people should not be announcing people are "fools" in this regard. Your UWTI trades are easily the worst posted trades on this site this year. You basically misread the Oil market to the extreme. No one is calling Dow 7500 because earnings don't justify it. The P/E on that would be ridiculously low. But you don't do research, do you ? It's all emotionally based conspiracy theories, bubble talk, and calling investors and central banks "fools". And you are wrong on Oil, plenty of analysts said the Oil price was going to collapse because of oversupply. They didn't call a top, which is a fools game. But much earlier this year, many analysts forecast as low as $30-$40 Oil, and one I heard said it could hit low $20's ( the marginal cost to Oil suppliers desperate to unload inventory ).
nine ender do you ever listen to pink floyd? I rather like them. The lunatic is on the grass. The lunatic is on chapley grass. Remembering oil sands and RIMM and all their plans. Got to keep the loonie on the path. The lunatic is in the hall. The lunatic is in Danforth hall. The paper holds their folded faces to the floor And every day the Globe brings more. And if the dam breaks open many years too soon And if there is no room upon Forest hill And if your head explodes with dark forebodings too I'll see you on the dark side of the moon. The lunatic is in your head. The lunatic is in your head You raise the blade, you make the change You re-arrange him 'til he's sane. You lock the door And throw away the key There's someone in your head but its not me.