eagle you are welcome i sold 1/4 of my BQI at 5.22 here, cause my average entry was 4.10 and i am a "sell into strength" guy to some extent. gotta take SOME profit. as for other oil plays. i have a fair bit of USO, which is obviously a simple way to play oil. and i have been scalping some QM (crude futures). that is a fat contract though. can be scary to trade, for somebody used to YM . of course, natural gas is even more insane to trade. THAT one scares me. i am NOT as hyped up on ESLR as i have been on BQI, but i do like it as an alternative energy play that may have some poppage from oil strength. it's somewhat speculative, but i like the entry right here. right now it is @ 8.60, and i hella volatile, so i would think a minimum of .40 stop would be nice. i would NOT load the boat on ESLR. it's a spec play. i have less confidence in it than i did in BQI. but again, APART from BQI, my only major oil plays are USO and crude futures.
oh, and i have been in XOM for 2 years, but that's an investment, not a trade, and its a bit expensive right now imo
What about the 340 million barrells in storage (record). Shouldn't we use some of that up before we hope for prices to go higher? There is so much oil on the markets that opec is having to shut down production. This is bearish. Because now we not only do we have to work through the inventory, but we have to work through the spare capacity that Opec has taken off line. If oil does not go up this winter, I bet it will fall to $45 during spring shoulder season. Then it will be time to load the boat.
So I wouldnt buy it here not at 62.00 Lets see a test of 60.00 first and if that is really a so called floor all the talking heads are mentioning.
Oil is not trading based on fundamentals. Everyone has got their head buried in the Traders Alamanac and it shows that XOI (OIL) has performed the best between December and June. Honestly, I think its time to bet the farm on oil. Most of these oil stocks have been channel trading and consolidating for the last month. Now they are breaking out. Most of these small cap oil stocks are small floats. Once attention turns away from tech, which it appears to be doing., everyone is going to jump back into their favorite oil play. If you go back to the archives and review all of the past December meetings, the Saudis always turn off the tap. The papers will soon be reading "Saudis very angry - Opec turning off the tap". The first phase will be the brutal winter and then the next phase will be OPEC. Then any terrorism or malfunctions will add a little sprinkle here and there. If a hurricane hits, then we have jackpot. It is now time to do a "moback" on USO. Lots of small float oil drillers and other ones. Some of these guys have under 20 million in shares. If the trading crowd could pump up stocks like EFUT, then they will have no problem pumping up the drillers. Last year, I missed out on these speculative oil plays because my attention was elsewhere. I have learned my lesson. Its now time to join the energy complex and bang the oil drum. Soon Cramer will get on television telling us to jump on into oil and get out of the tech sector. The oil sector has been battered for the last 3 months. Now its time get back into the old faves and momos of last year. OIL! WE CANT LIVE WITHOUT IT!
t.boone pickens is so smart! ha he declared it was going to 70 right when we were going into are coldest months of the year. thats like the weatherman telling you its going to rain as the first drops are falling from the sky.