Tuesday, April 18, 2006

Alert: Oil Top

According to our model June Oil Spot is right near (72.30) its intermediate top. This is a technical short signal in an overall uptrend that we expect to continue on a longer time frame.

What we are doing:
  • We're short ATM April put verticals on many Oil names with expectation of pinning and dip buyers coming in with every new opportunity.
  • We're buying May ATM puts on select names such as our favorite (APC) and several others.
  • We're looking to sell QM May NYMEX futures near these levels. In fact, every new move higher should be met with selling.
This is super-aggressive and extremely contrarian. According to all the hoopla surrounding commodities, this feels right.

Cheers,
/Dmitry

2 Comments:

At 11:05 AM, Blogger Aditya Kumar SIngh said...

Hello sir,

I really love your blog... its nice. keep posting. And please see my stock market blog "Successful Investing" also.

http://indiamf.blogspot.com

regards
Aditya

 
At 9:13 PM, Blogger Roberto said...

You might want to take a look at this... http://nasdaqtrader.blogspot.com/2006/04/power-of-headlines-on-markets.html

Oil is making headlines the lemons are coming!

 

Post a Comment

<< Home