Oil Ready For New Highs?
Posted on Thu 12th Jun, 2008 05:49:23 PM
After opening down and rallying to close right near intraday highs for the session today you have to wonder what tomorrow holds in store for oil prices.
To track oil I follow the United States Oil Fund (USO) which is an ETF that corresponds to the price of light sweet crude.
Below you can see a chart of USO and the recent price volatility as the ETF has been forming a horizontal channel.
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Blain,
Coal stocks are super hot! Check out ANR,PCX, JRCC, and WLT. I missed those. I bought into NCOC today. I will hold it and see if it can run like JRCC.
The trend continues! Looking back now I should have held my position in ANR
Have a fantastic weekend Steve.
Have a great weekend yourself, Blain!
Btw, I got stopped out of GRMN at 49.50 for a loss. Guess, the stock wasn’t ready.
Have you seen IPHS? I would like to find something like that early and put all of my eggs in that basket. WOW!
I’ve had FDG (Forging Canadian Coal Trust) for a while now. I like the trusts a bit more as they don’t take quite the tumble when commodities do.
While the strength of the dollar continues, I still can’t deny the multi year weakness. I’ve shorted oil in the past, but it’s a good trade onny approach and I think you need to get out rather quickly with these wild swings as of late. I bought a JRJC call and sold it, then finally gave up and bought some common for my IRA. Hoping it continues, but may be a risky trade. There are better coal companies out there that I like and used to own (BTU, PCX, MEE), but they are all so toppy right now. What a hard environment to invest in.
Wish all the best of luck, but for right now I’m just giving up and going with what is working. I’m long the SSO, but it’s a long term play. I think the good trade for now is simply getting commodoties on dips. The dollar index tried to break out 3 times, this is the higher 4th on the year chart where it finally did make a new high, but again, mixed sentiment.
Doh per my last comment, I meant JRCC (James River Coal), not JRJC….albeit JRJC has always peaked my interest from time to time….
Chemical stocks have had some fantastic runs, NEU was another until it got completely hammered in late April.
JRCC has had an insane run. One reader had it at $40 and I am just jealous I missed it.