Why the Oil Histrionics?

Psychology | June 7th, 2008

There is nothing unusual about the oil move of the last year. Markets, and go look at just about chart of the last 40 years with a big move, shift unexpectedly and move great distances all the time. Stocks, gold, cotton, corn, dot-coms, whatever - markets trend. Oil just so happens to be the life blood that affects everyone’s pocketbook perhaps more so than any other market, but from a trend perspective, and especially if you have been long oil in some form or another, has been a beauty of a money making opportunity. Better to live in the here and now than sit around and complain about the good ole days, even if the good ole days were only a year ago! Time marches on. Adjust or die.

What Others Think

Ken - Todays Breakout Stocks Added:

June 7th, 2008 at 4:28 pm

Adjust or die is right. Just like Darwin discovered so many years ago, it wasn’t the strongest or the smartest species that survived…it was the most adaptable.

chump Added:

June 7th, 2008 at 8:26 pm

amen. Did anybody see that dude on CNBC on Friday(I think) arguing about how congress needs to step in and save the airlines? He even mentioned how cheap airline tickets are. It was unbelievable. All he kept saying was congress needs to step in. Provided no real argument or anything. It was pathetic and the faces he kept showing during the interview were hilarious. Now congressmen are proposing spending billions of dollars on alt-energy. What in the hell do they think caused the growth in all these alt-energy companies/technology over the past 5 years?

P.S. both of your books are awesome.

Carl Added:

June 9th, 2008 at 7:56 am

Another look at it is simply the Supply & Demand created by Program Trading in today’s electronic crude markets.

Since the bulk of the trading volume has moved from the pits to computerized exchanges, it seems to me, that Program Trading will likely move price around more than fundamentals…that is in the short-tun.

The following link shows how Buy Programs in Crude lift the market.

http://www.transactionlevelanalysis.com/2008/06/when-does-the-smart-money-make.html

Hope that you find it interesting.