Yeah, you've been sitting "tight" on a bunch of "paper" trades that have been underwater for weeks, if not months . . . Please spare us on how you continue to average down on one "loser" after another ( fighting the TREND ) with absolutely ZERO stops and no risk management parameters whatsoever. If you really did put your money where your mouth is, you'd be bankrupt. Period.
Did anyone read the link that RhinoGG posted. I participated in another thread that was based solely on this article. I'm no socialist. I believe in markets. But not necessarily completely free unregulated markets. If you look at the NASDAQ bubble it was also due to rampant speculation and the government came in after the pop and put regulations in place(the PDT rules) to keep such an event from happening again. Should the government wait until the oil bubble pops to take a similar action or should it take these measures now, I don't know? But I believe that the government does have the duty to "monitor" markets and keep them running smoothly. I hardly believe this to be socialism.
Nah, they will wait until oil is up another $100 a barrel then maybe they will start drilling in alaska somewhere, or maybe let a few gallons out of the SPR...maybe send out another stimulus plan, this time amounting to around $500B so they can keep the economy rolling along as energy and food skyrocket. Remember this has nothing to do with supply and demand at the moment but PURE SPECULATION....the bubble is here.....
He has no idea what he is talking about. Hell, he doesn't do anything else but "paper" trade in between his college classes at UCF.
There is nothing wrong with learning to trade while attending college. I trade forex and go to Georgia Tech. But I do disagree with him. The correlation between oil and the dollar seems to have broken. As the dollar was gaining major ground against the euro in late April early May oil was making fresh highs. These moves by oil appear to be nothing more than speculation. I think increasing the capital requirement on trading oil would do a lot to burst this bubble over night.
Our government is notorious for being "Behind the Curve". Shouldn't shock anyone that they're coming to the table now.
The best and most effective way to burst a crude oil bubble (if it is one) is to simply do nothing from the regulatory point of view. Let all pension funds, hedge funds go leveraged long crude futures, ETNs, ETFs and God knows what derivatives. Let's have housewifes and taxi drivers leverage up on double long oil ETFs. Let's see more headlines of peak oil and $500/barrel predictions. That should do the trick. See Gold 1980.