Oil Going Much Higher!!!

Discussion in 'Economics' started by eagle488, Nov 27, 2006.

  1. This is my last chant on this thread that I have constantly beat into the ground. The Nasdaq has topped, there will be a recession next year and oil is going to 70 dollars per barrel.

    Start shorting those tech stocks and come back to your favorites in the oil industry. Yes, I mean you, that guy who has been short all these oil stocks all summer long. That guy who has been selling the drillers, the pipers, and every name in oil that you can bring up.

    A line in the sand has been drawn by the Saudis. The elections are way over. Now they are going to turn off the tap to fund the nuclear weapons program and the casinos.

    Dont wait. Dont sit in those tech stocks thinking their going to the moon.

    Its time to get into the energy complex!

    I will start it off right now!!!! HOFF!!!!!!!!!!!!!!!!!!!!!!!

    It is now time to get back into the complex!!!!!!!!
  2. S2007S


  3. dhpar


    I hope you are right with oil - but I do not think that the reasoning is very sound.
    Oil will go up because demand goes up and demand goes up if economy does well - which I believe it will.
  4. T-Boone Pickens is the Babe Ruth of the oil industry. He has now pointed his bat towards the stands.

    He states its going to 70 per barrel!!!

    The following is a ten day forecast for the NYC area:


    I had originally stated December 1 is when the guys on the NYMEX will be freezing. When these guys freeze, then their minds are going to be on how high oil is going to go.

    December 3 is the cold snap day now if we go by the weatherman. In any event, December will be much colder then November.

    Im looking at my energy complex page. The oil futures just keep going higher. All the small cap drillers/pipers/services that have been sold off in a panic all summer long are now coming back with a vengence.

    All the tech stocks on my tech stock favorite page are now solidly in the RED.

    Hope you decided to get that 4 cylinder instead of that 6 or 8.
  5. dhpar


    wow - what a prediction. I guess this will surprise everybody. :)

    Looks like you are pretty much bought in - so am I....

    and with respect to number of cylinders - if oil hits $80 I can use M1 Abrams for weekend rides and still smile...
  6. My reasoning goes far beyond T-Boone and the cold snap though.

    There has been a lot of investment in the mid-east. There are more cranes now in the mid-east then anywhere in the world. The Arabs will not let oil go down otherwise they will be in the red.

    Investors have topped out the tech stocks to unbelievable levels. The energy stocks are the only ones left with any value and the fundamentals for oil going higher are clearly there.

    You dont want to invest in the S&P or the DOW with oil going higher. Higher oil cuts into their profits. If oil goes higher, then the interest rates go higher. Oil causes costs to rise which are then passed on to the consumer. Bernanke then sees things rising and believes inflation is out of control, when its not. Its really oil that is out of control. Rising interest rates mean a lack of liquidity so your tech stock favorites are going to redline.

    The only thing left for the hedge funds and the mutuals to invest in is the energy complex.

    As well, historically, the XOI starts its bull run in mid-December and doesnt stop until June. The reason why it starts in mid-December is because of the cold snap in December. Anectdotally, since oil is mostly traded by humans in NYC, I believe that when the traders start feeling the real cold then thats when they start turning up the oil. Historically, NYC starts getting real cold in December just as the XOI starts getting turned up up up.

    You might as well start choosing which energy companies to buy right now before they get snapped up by the hedge fund bandits.

    Sorry for my over-enthusiasm on a red day, but as that guy from the A-Team used to say. "I love it when a plan comes together". I have been planning this out for 3 months being patient and watching as the oils get sold off. From experience, I know that December will be the line in the sand.
  7. USO, XLE, OIH flat to down today. Please re check your mojo.
  8. dhpar


    don't push it eagle - you look funny.
  9. The real excitement is yet to come.

    Right now, feels so nice outside, then there is going to be that day very soon. It will be like day and night.

    If you live in NYC, then you know what I mean. One day its nice and then the cold/snow comes quick. The time for that XOI is not now, its 1-2 weeks in December.

    However, the time is now to snap up your oil faves. Toss DIVX into the trash. Now its time for something different...
  10. dhpar


    I live in London. We do not have cold snaps - we have global warming :D
    #10     Nov 27, 2006