Why are oil prices so low?

EXavier, the correlation is a rolling 20 days.... thats not that long. and as you can see it isn't perfect.

 

That was my point, correlation analysis isn't perfect in the short term - I wouldn't vote with my money with that level of imprecision

 

Today silver was up 0.3%, but many silver stocks declined 3 to 5%, far more than the general market.

 

Neither would I. But why should we stop others from doing so? The holidays are fast approaching. Tis the season for low hanging fruit...

 

Can you look at a long term chart of the spread of STO-WTI, especially around the 2008 oil crash,
and see if there were some tradeable patterns. Chart trading?

 

Basis for speculation? How about Greed?

But I couldn't care less really, I'm just happy to know that these fools got killed (again), the oil producers turned out to be the biggest winners, many of them wouldn't ever be profitable if it wasn't for these hedge funds.

 

I wasn't aware I was in 'dick mode'. If I am, which mode are you in then?

There's plenty of people on this site trying to 'help', so you're in good company there. Among my favorites are dbphoenix and other demo traders. If you're going to become hurt because someone doesn't take what you say at face value and ask you to explain your statements, then so be it.

Get off your high horse already and don't insult people just because they don't bow down to you as some infallible guru.

I never said I wanted to make a trade based on correlation. I'm merely curious about the correlation between stocks and oil. To me, it would be foolish to not at least look at it.

Again, you're the one making a load of assumptions here.

 

Thanks, man. Will do. And thanks for the chart!

I will look into it. Currently very busy with school, but I hope to have some time over the weekend.

And neither would I. Never said I would either. I just think it's worth looking into when you're trading an oil stock on a daily time frame. I'm not scalping for ticks here.

I'm reasoning that if, say oil has $20 more down side potential from here and say, Statoil, has support in it's current area with the next one being 10% lower, PERHAPS it would be reasonable to suspect that Statoil may trade lower than the current area before finding a bottom.

But perhaps it's a stupid assumption.

 

Being a dick is when someone is reaching out and trying to help and then you act like you don't need their help. I'm not in dick mode because I'm not asking for your help and then copping an attitude. You keep repeating this insane insertion over and over again that your basis for making this trade in stat oil is based on the price of oil. You then assert there must be some correlation. Then you say it's not a correlation trade. Then you waffle around about where you think oil prices are going then you say you don't want to trade oil because you don't know where oil is going. Ugh. Talk about paralysis by analysis. Here, I'll make this really easy for you mr. college student. Buy stat oil and sell oil against it. If you believe there is correlation and you believe that stat oil will outperform oil itself, then it's a good trade. Of course if you believe there is a strong correlation then you are implying that buying oil and stat oil are going to to trade similar yet you have no interest in buying oil itself. Listen man, I'm trying to help you through your logic here. All ideas can be broken down into their most simple structure. Good luck.

 

I think "dick" is the wrong word for Maverick74 or Laissez Faire. Of the two, Maverick74 is what we call a "troll".