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VIX, Oil, BRICS & Sterling's Sell-Appeal
BRICS equity indices fail at key fib retracements, VIX and oil near major trend lines and sterling's sell-appeal hasn't looked this good in a while.
I believe that the Global equity markets shall continue for a surge till late tuesday, and Gold is on the verge of breaking the $1,000 mark and there is some dollar weakness. Hence, I assume that the crude will benefit a bit till early wednesday.
You have also to remeber the API data coming on Tuesday and the DOE data coming out on Thursday.
Moreover, unable to maitain below 67.50 on friday, may help the crude to test the 70-71 levels.
Atleast I hope....
Sorry. I meant 'assumption'...not argument. Because I think it'll struggle beyond 68.70...
Whats your underlying argument for oil to test 70 or even 71?
I repeat! It's BP Capital...British Petroleum Capital...NOT Barclays! The oil company BP has an investment arm...BP Capital. So tell me...will these alternate fuel cars reach Pakistan, India, Indonesia, China, Russia, Bangladesh - bulk of the world's population in the nest five? I don't think so!
Do not invest anywhere based on this assumption. :) And btw, WHO are the largest alternative energy investors? These big oil companies. Do you REALLY believe they are serious about losing their bread & butter (oil) when they've already invested SO much in finding and drilling oil blocks as early as the last ten years and as afar as the next ten? Do you really think they'd give up GoM, Carabobo & Tupi in favor of some alternte fuel...w/ lesser sales...and lesser money? Surely not!
I like to go long on Oil. I am long at 68 and I think oil shall retest 70-71 levels, whereby a leg down to 65 shall happen and there I shall go long again.
Your take on oil for the week? I know you're invested heavily in it...
Nothing in the financial world is untenable! When oil was $25, we didn't think it would hit 50! When it hit 50, we didn't think it would reach 100. When it broke through 100, we didn't think it would reach 150. When it peaked at 147, we didn't think it would collapse to 33. So what makes you think we can't have 200 (not that I agree - it's plausible though)! And in NONE of the above cases did the world machinery cease to function. Things happen...and will continue to happen.
Today's is the fifth financial crisis to have occured - G. Depression, oil shock, tech blast, oil again & mortgage crisis - and will continue to occur. The problem is that we dumb humans forget...and get into it again! You think another crisis isn't in the offing? :)
Just stay easy and make your money either side - $30 (short) or $200 (long). We're waayyyyy too small to worry about the world demand & supply of oil!
And her, T. Boon Picken (head, BP Capital) also said oil would reach 300 in ten years! So let's take an average and settle on $150 again. So that would give ud 150 - 68 = $82 in profits. This is money which is yours & mine.
BP made a great discovery in GoM a couple of days back...Venezuela's Carabobo oil block...and the Tupi in Brazil are SUFFICIENT to feed the world for the next thirty years.
Just because I am no analyst at Goldman or an oil economist at Exxon doesn't mean you guys should take me less seriously... :p
Where did you come across the remarks you have posted?